What does diversification mean?
Definitions for diversification
dɪˌvɜr sə fɪˈkeɪ ʃən, daɪ-di·ver·si·fi·ca·tion
This dictionary definitions page includes all the possible meanings, example usage and translations of the word diversification.
Princeton's WordNet
diversification, variegationnoun
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"
diversificationnoun
the condition of being varied
"that restaurant's menu lacks diversification; every day it is the same"
Wiktionary
diversificationnoun
The act, or the result, of diversifying
diversificationnoun
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
Samuel Johnson's Dictionary
Diversificationnoun
Etymology: from diversify.
If you consider how variously several things may be compounded, you will not wonder that such fruitful principles, or manners of diversification, should generate differing colours. Robert Boyle, on Colours.
This which is here called a change of will, is not a change of his will, but a change in the object, which seems to make a diversification of the will, but indeed is the same will diversified. Matthew Hale, Origin of Mankind.
ChatGPT
diversification
Diversification is a risk management strategy that involves spreading out investments across various financial instruments, industries, or categories to reduce exposure to any one particular asset or risk. The goal of diversification is to mitigate potential loss and achieve more stable financial returns. The logic behind this strategy suggets that a varied portfolio of different types of investments will, on average, yield higher returns and pose a lower risk than any individual investment within the portfolio.
Webster Dictionary
Diversificationnoun
the act of making various, or of changing form or quality
Diversificationnoun
state of diversity or variation; variegation; modification; change; alternation
Etymology: [See Diversify.]
Wikidata
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.
Usage in printed sourcesFrom:
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Numerology
Chaldean Numerology
The numerical value of diversification in Chaldean Numerology is: 7
Pythagorean Numerology
The numerical value of diversification in Pythagorean Numerology is: 1
Examples of diversification in a Sentence
Foreign policy should give particular priority to partners and initiatives crucial to EU efforts to strengthen the diversification of EU energy sources.
Diversification and some redundancy in supply chains will make sense given the level of risk that the pandemic has uncovered.
Vice President Maros Sefcovic:
In 2016, geopolitical challenges will not go away. We have to keep pushing for diversification of energy sources.
(Oil) exporters often have very unbalanced economies and rely heavily on their commodities... Eventually, if oil prices signal that OPEC is losing pricing power and facing obsolescence, these regions don't have any diversification.
Any time China faces a slowdown or faces overall market volatility, it is going to be the biggest driver of volatility in the EM portfolios, because it's so big, you don't get a diversification benefit.
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Translations for diversification
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"diversification." Definitions.net. STANDS4 LLC, 2024. Web. 4 Oct. 2024. <https://www.definitions.net/definition/diversification>.
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