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Liquidity diversification |
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Liquidity diversificationInvesting in a variety of maturities to reduce the price risk to which holding long bonds exposes the investor.Liquidity diversification Similar MatchesCone of diversificationCone of diversificationSee diversification cone. Markowitz diversificationMarkowitz diversificationA strategy that seeks to combine in a portfolio assets with returns that are less than perfectly positively correlated, in an effort to lower portfolio risk (variance) without sacrificing return. Related: Naive diversification. Currency diversificationCurrency diversificationUsing 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. Sector diversificationSector diversificationConstituting of a portfolio of stocks of companies in each major industry group. International diversificationInternational diversificationThe attempt to reduce risk by investing in more than one nation. By diversifying across nations whose economic cycles are not perfectly correlated, investors can typically reduce the variability of their returns. Further SuggestionsPrinciple of diversificationUnique Diversification Benefit Naive diversification diversification Diversification Efficient diversification Indirect diversification benefits Diversification cone |
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