What does Diversification mean?

Definitions for Diversificationdɪˌvɜr sə fɪˈkeɪ ʃən, daɪ-

Here are all the possible meanings and translations of the word Diversification.

Princeton's WordNet

  1. diversification, variegation(noun)

    the act of introducing variety (especially in investments or in the variety of goods and services offered)

    "my broker recommended a greater diversification of my investments"; "he limited his losses by diversification of his product line"

  2. diversification(noun)

    the condition of being varied

    "that restaurant's menu lacks diversification; every day it is the same"


  1. diversification(Noun)

    The act, or the result, of diversifying

  2. diversification(Noun)

    A corporate strategy in which a company acquires or establishes a business other than that of its current product

  3. Origin: From diversificatio, from diversificatus, past participle of diversifico, from diversus + facio

Webster Dictionary

  1. Diversification(noun)

    the act of making various, or of changing form or quality

  2. Diversification(noun)

    state of diversity or variation; variegation; modification; change; alternation

  3. Origin: [See Diversify.]


  1. Diversification

    In finance, diversification means reducing risk by investing in a variety of assets. If the asset values do not move up and down in perfect synchrony, a diversified portfolio will have less risk than the weighted average risk of its constituent assets, and often less risk than the least risky of its constituent. Therefore, any risk-averse investor will diversify to at least some extent, with more risk-averse investors diversifying more completely than less risk-averse investors. Diversification is one of two general techniques for reducing investment risk. The other is hedging. Diversification relies on the lack of a tight positive relationship among the assets' returns, and works even when correlations are near zero or somewhat positive. Hedging relies on negative correlation among assets, or shorting assets with positive correlation.


  1. Chaldean Numerology

    The numerical value of Diversification in Chaldean Numerology is: 7

  2. Pythagorean Numerology

    The numerical value of Diversification in Pythagorean Numerology is: 1

Sample Sentences & Example Usage

  1. Kathryn Shih:

    We see a lot more interest in diversification.

  2. Finance Minister Wolfgang Schaeuble:

    I expect a stronger diversification (of the party spectrum).

  3. Yuri Trutnev:

    Crises and market distortions highlight the need for diversification.

  4. Caesars Entertainment:

    The diversification of activities available in AC stands to benefit all of the city's stakeholders.

  5. Khalid AbuLeif:

    We know we are in a race with time. Climate change and economic diversification for us is hand in hand.

Images & Illustrations of Diversification

  1. DiversificationDiversificationDiversification

Translations for Diversification

From our Multilingual Translation Dictionary

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"Diversification." Definitions.net. STANDS4 LLC, 2018. Web. 25 Apr. 2018. <https://www.definitions.net/definition/Diversification>.

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