The effort to protect against sharp changes in the price of securities (and assets in general) by dividing them into different securities. Various portfolio theories model such diversification, some of which are highly mathematized and almost always exclude tax factors. However, it is basically not possible to protect against (even worldwide) pronounced, market-wide price changes of assets of any kind, because these are characterized by concurrency. – See allocation, investment model, investment risk, expectations theory, new, financial engineering, financial theory, financial market stress, portfolio optimization, price changes, concurrent, residual risk, risk, systematic, volatility. – Cf.
Deutsche Bundesbank Monthly Report of September 2005, pp. 62 f. (volatility in the past, with various overviews), ECB Monthly Report of January 2012, pp. 20 ff. (uncertainties also affect investment diversification; overviews; references).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
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