"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
Synonyms for individual words can be found below.
«diversification»
«potential»
Sentences with «diversification potential»
- The average pairwise correlation of 0.03, as shown in the following correlation matrix, confirms the strong diversification potential of combining these three strategies: (researchaffiliates.com)
- 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. (personalfinanceinsider.com)
- Were there investable instruments that had diversification potential with double - digit increases last week? (spvixviews.com)
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