DEMO — development content for layout testing. Not real editorial reporting.
DEMO content for development and layout testing — not real editorial reporting.
The risk of a portfolio depends not only on the risk of each holding but on how holdings move relative to one another.
How it works
Spreading investments across asset classes, regions and sectors can reduce the impact of any single loss.
Holding assets that do not move in lockstep can lower a portfolio’s risk without necessarily lowering its expected return.
What to watch
Diversification has limits: in market-wide sell-offs correlations often rise, and some risks cannot be diversified away.
Key concepts
- Portfolio
- Risk
