What does diversification mean?

Definitions for diversification
dɪˌvɜr sə fɪˈkeɪ ʃən, daɪ-di·ver·si·fi·ca·tion

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

    Etymology: From diversificatio, from diversificatus, past participle of diversifico, from diversus + facio

  2. diversification(Noun)

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

    Etymology: 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

    Etymology: [See Diversify.]

  2. Diversification(noun)

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

    Etymology: [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.

How to pronounce diversification?

  1. Alex
    US English

How to say diversification in sign language?

  1. diversification


  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

Examples of diversification in a Sentence

  1. Energy Diplomacy Robin Dunnigan:

    North Stream-2 actually threatens not only Ukraine's survivability and their resources, but it is a risk to fuel diversification in Europe, especially southeastern Europe.

  2. Aviva Chief Executive Mark Wilson:

    This new partnership extends Aviva's presence in general insurance, brings additional diversification benefits to the group and presents excellent opportunities for revenue and earnings growth in the attractive Canadian market.

  3. Ilham Aliyev:

    Events and developments that we have observed in 2014, prove that this year will be very difficult for the world economy, but thoughtful economic policy, diversification and unity between the country's leadership and people guarantee that this year will be successful for us.

  4. Mike McCormack:

    AT&T clearly is looking for a diversification strategy from a revenue perspective. DirecTV is under strain. This (deal) was a hedge against content costs.

  5. Yuri Trutnev:

    Crises and market distortions highlight the need for diversification.

Images & Illustrations of diversification

  1. diversificationdiversificationdiversificationdiversificationdiversification

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Translations for diversification

From our Multilingual Translation Dictionary

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"diversification." Definitions.net. STANDS4 LLC, 2020. Web. 16 Jul 2020. <https://www.definitions.net/definition/diversification>.

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