Currency diversification


 

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Currency diversification

Using more than one currency as an investing or financing strategy. Exposure to a diversified currency portfolio typically entails less exchange rate risk than if all the portfolio exposure were in a single foreign currency.



Currency diversification

Similar Matches

Diversification

Diversification

Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.


Sector diversification

Sector diversification

Constituting of a portfolio of stocks of companies in each major industry group.


Unique Diversification Benefit

Unique Diversification Benefit

Reduction in the likelihood of financial distress for a conglomerate firm that comes with its diversified investments.


Naive diversification

Naive diversification

A strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered. In contrast, mathematical programming can be used to select the best possible investment weights. Related: Markowitz diversification.


Diversification cone

Diversification cone

For given prices in the Heckscher-Ohlin Model, a set of factor endowment combinations that are consistent with producing the same set of goods and having the same factor prices. Such a set has the form of a cone.


Further Suggestions

diversification
International diversification
Efficient diversification
Principle of diversification
Markowitz diversification
Liquidity diversification
Cone of diversification
Indirect diversification benefits


 
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