diversification ratio¶
The. (2008). diversification ratio. effective number of bets.
Retired. This entry was not a citation. Our extractor stored an inline prose definition from the article as though it were a bibliographic record, so its title is the name of a concept rather than of a published work. The page is kept because links to it still resolve, but it is withdrawn from the reference list. This entry is kept so the citations that pointed at it still resolve, and so the correction is visible rather than silent.
Cited by¶
1 citation across 1 artifact.
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Mechanisms¶
- Diversification Ratio Calculation
- Computed on placid recent data it flatters the pool, because the correlations that decide survival are the crisis ones the calm sample does not contain, and diversification ratios are notorious for collapsing toward 1 exactly when they are relied upon.
This sourceBoth are known to fall toward 1 under market stress, as correlations converge, which is why the "correlation regime" dial above is load-bearing.
- Computed on placid recent data it flatters the pool, because the correlations that decide survival are the crisis ones the calm sample does not contain, and diversification ratios are notorious for collapsing toward 1 exactly when they are relied upon.
Verification¶
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Registry ID ref:d6893982e0b6 · see in the full table