332 firms (from COMPUSTAT) were used to empirically test the relationships between diversification and risk, and … desynchronicity and risk. The results show that diversification alone will not always lead to a lower corporate risk. To reduce risk …A longstanding objective of managers is to reduce risk to their businesses. The conventional strategy for risk …

huge losses for financial institutions. Diversification ratio (DR) measures the degree of diversification using the Value-at-Risk … effect of diversification for extreme risks. In this paper, we empirically examine the DR strategy by using more than 350 S … portfolio, minimum-variance portfolio, extreme risk index portfolio, and most diversified portfolio. The performance of …

that Lévy process-based models provide a better fit to the US statutory accounting data, and identifies how parameter risk … insurance parameter risk. …

Risk diversification is the basis of insurance and investment. It is thus crucial to study the effects that could limit … occurrence, systemic risk can reduce dramatically the diversification benefits. It is clearly revealed via a non … it. One of them is the existence of systemic risk that affects all of the policies at the same time. We introduce here a …

In this paper, we study the implications of diversification in the asset portfolios of banks for financial stability … and systemic risk. Adding to the existing literature, we analyse this issue in a network model of the interbank market. We … both the level of diversification, and the connectivity and structure of the financial network. In contrast to earlier …

diversification within our proposed framework. …

In this article, we investigate the validity of diversification effect under extreme-value copulas, when the marginal … three maximum domains of attraction. We show that Value-at-Risk (V@R) under extreme-value copulas is asymptotically … findings enrich and supplement the context of the second fundamental theorem of quantitative risk management in existing …

these stocks in diversifying portfolios, analyzing their return potential and risk profiles. Our analysis includes various … investment scenarios, focusing on common AI-related stocks in the United States. We explore the influence of risk management …

This article introduces a new approach for dealing with the diversification/concentration risk of fixed income assets … only for portfolio management but also for risk management purposes. The approach that I introduce shows the dependence of … the critical number of lines of fixed income assets on the main interest rate risk and credit risk drivers. Specifically …

We provide an axiomatic foundation for the measurement of correlation diversification in a one-period portfolio model …. We propose a set of eight desirable axioms for this class of diversification measures. We name the measures satisfying … these axioms coherent correlation diversification measures. We study the compatibility of our axioms with rank …