Diversification Meaning: Definition, Examples, and Translations

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diversification

[daɪˌvɜr.sɪ.fɪˈkeɪ.ʃən ]

Definitions

^{Context #1 | Noun}

investment

The process of allocating capital in a way that reduces the risk of loss by investing in a variety of assets across different industries, sectors, and geographic locations.

Synonyms

assortment, mixture, range, variety.

Which Synonym Should You Choose?

Word	Description / Examples
diversification	Best used in business or financial contexts to describe the process of increasing variety to reduce risk. The company's diversification into new markets has been successful. Investment diversification can protect your assets.
variety	Best used to indicate different types or kinds, often to highlight diversity and options. A variety of foods were available at the buffet. There is a great variety of opinions on this issue.
assortment	Used when talking about collections of items, often in retail or general descriptions. The store offers a wide assortment of chocolates. She presented an assortment of different cheeses at the party.
mixture	Appropriate for describing combinations of different elements, often in science, cooking, or daily life. The mixture of ingredients needs to be stirred well. Their team is a mixture of experienced and new players.
range	Commonly used to describe a spectrum of possibilities or options, from one limit to another. They offer a wide range of services. The store has a range of prices to suit all budgets.

Examples of usage

Successful diversification can help investors mitigate the impact of market fluctuations.
Diversification is a key strategy for managing risk in an investment portfolio.

^{Context #2 | Noun}

business

The strategy of expanding a company's products or services into new markets or industries to reduce dependence on a single revenue source.

Synonyms

broadening, expansion, extension, variation.

Which Synonym Should You Choose?

Word	Description / Examples
diversification	Used primarily in business or finance to describe the process of adding new products, services, or markets to spread risk and increase opportunities. The company's diversification into renewable energy has boosted its market share. Investors aim for diversification in their portfolio to minimize risks.
expansion	Generally used in business, projects, or physical spaces to describe the growth or enlargement of scope, scale, or size. The tech company is planning a major expansion into European markets. The expansion of the shopping mall will include more stores and parking spaces.
broadening	Utilized in a general sense to indicate making something wider or more inclusive, can refer to experiences, knowledge, or perspectives. Traveling is an excellent way of broadening your horizons. The government is focusing on broadening access to healthcare services.
extension	Often applied to describe an addition to an existing structure, time period, or scope, implying lengthening rather than widening. An extension to the deadline has been granted due to unforeseen circumstances. They built an extension to their house to create more living space.
variation	Used when there are different forms, versions, or changes in a particular subject or object, often implying differences within a group or range. There is a significant variation in test scores among the students. The recipe allows for variation depending on your preference.

Examples of usage

The company's diversification into the tech sector helped it weather the economic downturn.
Business diversification can enhance growth opportunities and reduce vulnerability to market changes.

^{Context #3 | Noun}

ecology

The process of increasing the variety of species in an ecosystem, which can enhance its resilience and stability.

Synonyms

array, diversity, multitude, variety.

Which Synonym Should You Choose?

Word	Description / Examples
diversification	Typically used in business and finance to refer to spreading out investments or activities to reduce risk. The company focused on diversification to mitigate potential losses Diversification of assets can protect against market volatility
variety	Used in everyday language to refer to a range of different things, often to emphasize the options or choices available. The buffet offered a variety of dishes She enjoys a variety of hobbies in her free time
array	Often used to describe an impressive or organized group of items, especially in contexts involving selection or arrangement. The store offers an array of products to choose from She displayed an array of colorful artwork
multitude	Refers to a large number of individuals or things, often implying an overwhelming amount. There was a multitude of issues that needed addressing A multitude of fans gathered to meet the celebrity
diversity	Commonly used in social, cultural, and ecological contexts to refer to a variety of different elements or people. The university promotes diversity among its students and staff Biodiversity is crucial for maintaining ecological balance

Examples of usage

Diversification of plant and animal species can improve the overall health of an ecosystem.
Ecological diversification plays a crucial role in maintaining biodiversity and ecosystem services.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

In finance, 'diversification' refers to spreading investments across various assets to reduce risk.
Companies often diversify their products or services to protect against market fluctuations.
Farmers might diversify crops to ensure that if one fails, others can still provide income.

Ecology

Biodiversity, the variety of life in an ecosystem, is essential for resilience and stability.
Ecosystems with high diversification often recover better from disasters and changes.
Species that are well diversified can use resources more efficiently, leading to healthier environments.

Cultural Studies

Cultural diversification is the result of globalization, leading to the blending of different traditions and practices.
In diverse societies, creativity and innovation flourish as various perspectives come together.
Educational environments benefit from diversification, as varied backgrounds enrich the learning experience.

Food and Nutrition

A diversified diet means eating different foods to get all the necessary nutrients for good health.
Combining various food groups can lead to more balanced and enjoyable meals.
Research shows that people who eat a diverse range of foods are likely to maintain better health over time.

Origin of 'diversification'

Main points about word origin

The word comes from the Latin word 'diversificare', which means 'to make different'.
The prefix 'di-' suggests 'two', implying the idea of splitting into various types.
It was first used in English in the 19th century, originally referring to the act of making things different.

The term 'diversification' originated in the field of finance, specifically in the context of investment portfolios. It gained popularity in the mid-20th century as a strategy to reduce risk by spreading investments across different assets. Over time, the concept of diversification has been applied to various fields, including business and ecology, highlighting the importance of variability and resilience in different contexts.

Word Frequency Rank

Ranked #10,838, this word falls into high-advanced vocabulary. It appears less frequently but is valuable for expressing precise meanings in specific contexts.

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10835 reportedly
10836 elongation
10837 perturbation
10838 diversification
10839 trusting
10840 bowels
10841 doom
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