Liquidity diversification


 

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Liquidity diversification

Investing in a variety of maturities to reduce the price risk to which holding long bonds exposes the investor.



Liquidity diversification

Similar Matches

Cone of diversification

Cone of diversification

See diversification cone.


Markowitz diversification

Markowitz diversification

A 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 diversification

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.


Sector diversification

Sector diversification

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


International diversification

International diversification

The 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 Suggestions

Principle of diversification
Unique Diversification Benefit
Naive diversification
diversification
Diversification
Efficient diversification
Indirect diversification benefits
Diversification cone


 
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