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Japanese Stock Trading Essentials
Title: About Portfolio Diversification [Japanese Stock Trading Essentials]
Source: Amigo Investment School
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This page discusses
the topic of portfolio diversification.
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To realize portfolio diversification, consider the following methods:
Asset class selection:
Choose different asset classes.
For example, combining different asset classes such as stocks, bonds, real estate, and cash can diversify risk.
Diversification within assets:
Even within the same asset class, diversification is important. When building a stock portfolio, diversifying across multiple companies and industries can reduce idiosyncratic company risk.