Diversification

Diversification is the best way to control risks inherent to the investments world and
this asset allocation software makes diversification and diversification analysis easy.

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Research

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Article Title	Description
IPC	Here we introduce the Intra Portfolio Correlation. The emerging industry standard diversification metric to guard against systemic risk.
S&P 500 Performance Tests	This research tests the efficacy of Diversification optimization using the GIC sectors categories as the dataset in a walk-forward head to head performance test pitting Diversification Optimization against capitalization weighting and equally weighted portfolios
How True Diversification Preserves Capital	This paper takes a critical view of the relationship of risk and return and the relationship of diversification and return. The results challenge many widely held assumptions about how risk is used in portfolio construction.
Risk or Diversification Management?	Risk management has had investors on the treadmill, sure you got some exercise, but you haven’t got anywhere. It’s time to consider diversification management.
Style Box vs. Sector Report 2.1	Learn the relative diversification merits of investing using sectors as the principal class divisor, as opposed to the widely used, yet ineffectual “styles.”
True Diversification Optimized Equity Index	Capitalization-weighting is the dominant method of index construction and is the primary benchmark used for measuring market and manager performance in the investment industry. Using the components of the S&P 500 Index, we investigate an alternative process-driven methodology for index construction and optimization that is centered on True Diversification®. We find that when reconstituting the S&P 500 universe from January 1996 to July 2010 using our methodology we can achieve annualized outperformance of 499 bps against the benchmark index.

Investment Portfolio Diversification

Gsphere is visual asset allocation software rooted in portfolio diversification. Diversification is displayed in 3D as symmetry, equating portfolio balance to physical balance.
Meanwhile, the optimal asset allocation is obtained. Gsphere creates one globally efficient model portfolio, determining the equilibrium of diversification, risk and return.