Termify logo Protermify Finance Finance English glossary for finance professionals and learners.

Investment

Lợi ích đa dạng hóa

The risk-reduction effect achieved by holding a mix of assets with imperfect correlations, lowering portfolio volatility relative to holding a single asset class.

Quick answer: The risk-reduction effect achieved by holding a mix of assets with imperfect correlations, lowering portfolio volatility relative to holding a single asset class.

This term page is part of the Protermify Finance glossary and is published as static HTML for fast indexing and clear language coverage.

Languages

ArabicDeutschEnglishEspanolFrancaisHindiBahasa IndonesiaItalianoJapanesePortuguesRusskiyThaiTurkceVietnameseZhongwen

Quick answer

The risk-reduction effect achieved by holding a mix of assets with imperfect correlations, lowering portfolio volatility relative to holding a single asset class.

Why it matters

Lợi ích đa dạng hóa matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

This page is rendered as static HTML from source-backed terminology data so search engines and AI systems can parse the content without client-side code.

Questions and answers

Questions and answers

What is Lợi ích đa dạng hóa?

In this glossary, Lợi ích đa dạng hóa refers to: The risk-reduction effect achieved by holding a mix of assets with imperfect correlations, lowering portfolio volatility relative to holding a single asset class.

How is Lợi ích đa dạng hóa used in finance?

In finance communication, this term appears in contexts such as: "Lợi ích đa dạng hóa trở nên rõ rệt nhất trong giai đoạn thị trường căng thẳng khi các tài sản có xu hướng tương quan cao hơn."

Why does Lợi ích đa dạng hóa matter in finance?

Lợi ích đa dạng hóa matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Lợi ích đa dạng hóa?

Lợi ích đa dạng hóa is mainly used by Financial Analysts, Bankers, and Traders.

What category does Lợi ích đa dạng hóa belong to?

In this glossary, Lợi ích đa dạng hóa is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

The risk-reduction effect achieved by holding a mix of assets with imperfect correlations, lowering portfolio volatility relative to holding a single asset class.

Operational example

The diversification benefit becomes most apparent during periods of market stress when asset correlations tend to increase.

Localized term

Lợi ích đa dạng hóa

Localized example

Lợi ích đa dạng hóa trở nên rõ rệt nhất trong giai đoạn thị trường căng thẳng khi các tài sản có xu hướng tương quan cao hơn.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

Back to glossary

Termify Get Termify on the App Store OPEN
AI Free AI Search Source-backed aviation answers