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Pricing

Research method

Diversification

Diversification is a canonical archive-taxonomy method; this registry entry defines its inputs, output and use boundary.

Output
Market-regime classification
Input
Cross-market prices, volatility, carry and portfolio weights
Horizon
Weeks to months
Best use
Put a single trade into a diversified or regime-aware context.

Registry evidence level: backtested. This is a navigation record, not a performance claim.

  • Input: Cross-market prices, volatility, carry and portfolio weights.
  • Output: market-regime.
  • Use boundary: Put a single trade into a diversified or regime-aware context.
The graph4

How the method is built, and where it has been read

Depends on

Read in the archive24 of 59 readings

1989Evaluate mechanical systems by peak-to-trough drawdownDrawdown and survival1990Stress-testing a futures sleeve across equity regimesPortfolio construction1990Score a trade after allocation, diversification, and a drawdown limitPortfolio construction1991Binomial counts for unrelated position constructionPortfolio construction1991How equal independent stakes change the odds of a complete lossPortfolio construction1991Ratchet the halt floor and stage exposure against cashDrawdown and survival1991Pairwise return covariance as a construction gatePortfolio construction1991Construct an equity book by weakening residual co-movement, then setting a market slopePortfolio construction1992Evaluating equity sleeves against an index-proxy cost dragPortfolio construction1993A three-sleeve regime map for equities, rates, and futuresPortfolio construction1994Equal-weight holding count as a construction controlPortfolio construction1995Sizing a trend futures sleeve in a 1995 policy shiftPortfolio construction1996A 1990s case on liquidity cycles, rank rotation, and cross-market sleevesPortfolio construction1996Evaluating a multi-market book without picking winnersPortfolio construction1996Regime-aware allocation beyond a single equity trendPortfolio construction1997Evaluating managed futures as portfolio diversifiersPortfolio construction1998Hedge-fund sleeves under a hard drawdown limitPortfolio construction1998Rank rotation, value screens, and ten-stock diversificationPortfolio construction1999Managed-futures construction from trend, leverage, and diversificationPortfolio construction2000Treat a single name as a node on a correlation treePortfolio construction2002Rising correlation undercuts foreign-listing diversificationIntermarket and spreads2002A capital-preservation case for index-proxy allocationPortfolio construction2002Precious metals as portfolio insurance in uncertain regimesPortfolio construction2003A directional call is not the skill that keeps an account aliveDrawdown and survival
This registry entry describes a research method. It is not investment advice and does not make a performance claim.