Oil is perceived as a good diversification tool for stock markets. To fully understand this potential, we propose a new … to competing models. Employing a recently proposed conditional diversification benefits measure that considers higher …-order moments and nonlinear dependence from tail events, we document decreasing benefits from diversification over the past ten …

. Moreover, we find that the impact of diversification depends strongly on the risk level. However, it is only for moderate risk …Should banks be diversified or focused? Does diversification indeed lead to enhanced performance and, therefore … banks' profitability (ROA) and their portfolio diversification across different industries, broader economic sectors and …