http://www.abcsofinvesting.net/investment-diversification/ Learn the basics of investing with 2 short posts per week Sun, 14 Mar 2010 02:40:43 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.abcsofinvesting.net/investment-diversification/comment-page-1/#comment-122 The Financial Blogger | Financial Ramblings Sat, 15 Nov 2008 11:31:38 +0000 http://www.abcsofinvesting.net/?p=327#comment-122 [...] I found a great post on What is investment diversification? at ABC’s of Investing. [...] [...] I found a great post on What is investment diversification? at ABC’s of Investing. [...]

]]> http://www.abcsofinvesting.net/investment-diversification/comment-page-1/#comment-90 The Struwwelpeter Edition of the Carnival of Personal Finance Mon, 10 Nov 2008 05:55:20 +0000 http://www.abcsofinvesting.net/?p=327#comment-90 [...] ABC’s of Investing: What is investment diversification? Find out with this short and simple explanation of what diversification is all about. [...] [...] ABC’s of Investing: What is investment diversification? Find out with this short and simple explanation of what diversification is all about. [...]

]]> http://www.abcsofinvesting.net/investment-diversification/comment-page-1/#comment-84 Tony Fri, 07 Nov 2008 05:02:56 +0000 http://www.abcsofinvesting.net/?p=327#comment-84 A great resource for looking at diversification is available through GlobeinvestorGOLD. If you are already a subscriber, you can create an online version of your portfolio on Globeinvestor and run a correlation analysis which shows you how highly each of your stocks follows each of the others. If they are too highly correlated, you are not properly diversified. You can also run a stock overlap report to see if you have the same holding in all or many of your mutual funds. The correlation analysis is particularly interesting. For example, in my portfolio, over the last 10 years, the TD Canadian Index-e has been negatively correlated with the TD Canadian Bond Index-e, which one would expect. As the performance of equities increases, that of fixed income investments will decrease and vice versa. Try it out if you are a GIG subscriber. A great resource for looking at diversification is available through GlobeinvestorGOLD. If you are already a subscriber, you can create an online version of your portfolio on Globeinvestor and run a correlation analysis which shows you how highly each of your stocks follows each of the others. If they are too highly correlated, you are not properly diversified. You can also run a stock overlap report to see if you have the same holding in all or many of your mutual funds. The correlation analysis is particularly interesting. For example, in my portfolio, over the last 10 years, the TD Canadian Index-e has been negatively correlated with the TD Canadian Bond Index-e, which one would expect. As the performance of equities increases, that of fixed income investments will decrease and vice versa. Try it out if you are a GIG subscriber.

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