This article proposes a multi-currency cross-hedging strategy that minimizes the exchange risk. The use of derivatives … international activities. In particular, the reduction in the exchange risk borne through the use of natural multi-currency cross-hedging …

We present four methods of assessing the diversification potential within a stock market, and two of these are based on … consistent picture. The potential for diversification declined almost monotonically in the three years prior to the 2008 …, the diversification potential declined even further in the 2011 European debt crisis and the American credit downgrade. …

The so-called risk diversification principle is analyzed, showing that its convenience depends on individual …

The paper examines how loan portfolio diversification drives bank returns, mainly focusing on the conditioning roles of … increased sectoral loan portfolio diversification reduces bank returns, but not all banks are equally affected. Banks that … adopted a business model towards non-interest activities are hurt less from loan portfolio diversification, and bank market …

The maximum diversification has been shown in the literature to depend on the vector of asset volatilities and the … diversification ratio. In empirical and Monte Carlo experiments, the resulting regularized rules are compared to several strategies …

analyze the relation between systemic risk and portfolio diversification, highlighting the differences between heterogeneous … and homogeneous diversification. Diversification is generally accepted to be the main tool for reducing idiosyncratic or … portfolio-specific financial risk, but the homogeneous diversification produces also effects on systemic risk. The research …

Diversification as a driver for portfolio construction. They introduce a measure of the diversification of portfolios that they term … the “diversification ratio”. The measure is then employed to build risk-efficient portfolios (the Most Diversified … which maximize diversification are strong candidates for achieving consistently better results than commonly used passive …

that no strategy consistently outperforms naive diversification in terms of mean excess return, Sharpe ratio, and turnover … parametric portfolio choice framework. Naive diversification continues to prevail, suggesting practical optimization techniques … are inferior to naive diversification when forming portfolios of individual stocks …

diversification in some settings may be beneficial, in the case of assets with identical payouts, fee minimization is the only …

Diversification is often spoken of as the only free lunch in investing, yet we show that it is not free and is properly … diversifying asset classes are high relative to their risk-adjusted diversification benefit. Because there is meaningful cross …