FYI: Diversification is among the most fundamental, well-accepted concepts within our industry: investors can mitigate their —portfolio risk by diversifying across different sectors, asset classes, countries, and investment strategies. The simplicity and robustness of this property makes it a ubiquitous goal across investment funds, asset managers, and advisors. Accordingly, a voluminous literature focuses on quantifying the degree of markets’ integration and the potential for portfolio diversification. In particular, these studies concentrate on one or more major asset classes, such as equity indices, foreign currencies, or bonds.1
Regards,
Ted
http://www.etf.com/sections/features-and-news/research-affiliates-diversification-strikes-again-evidence-global-equity?nopaging=1
