Sentences with phrase «diversification potential»
"Diversification potential" refers to the ability to spread investments across different types of assets or sectors. It reduces risk by distributing resources to various areas, increasing the probability of achieving better overall performance and avoiding undue reliance on a single investment. Full definition
The average pairwise correlation of 0.03, as shown in the following correlation matrix, confirms the strong diversification potential of combining these three strategies:
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Peer to peer loans have excellent diversification potential, since they most likely have low or negative correlation to many other common investment alternatives, such as stocks or bonds.
Were there investable instruments that had diversification potential with double - digit increases last week?
The investment universe of almost 4,300 non-U.S. small - cap stocks should allow active small - cap international managers greater diversification potential and flexibility in portfolio construction.
This grants higher diversification potential to procure the highest Roth IRA rates, since regular IRAs are only limited to CDs and mutual funds as investments.
Peer to peer loans have excellent diversification potential, since they tend to have low correlation to many other common investment alternatives, such as stocks or bonds.
These asset classes are chosen not only for their potential for returns — which are attractive in their own right — but for their diversification potential.
This is not unusual and again speaks to the diversification potential of factor - based strategies.