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Diversification: meaning, definitions and examples

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diversification

 

[ daɪˌvɜr.sɪ.fɪˈkeɪ.ʃən ]

Noun
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

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

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

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

Translations of the word "diversification" in other languages:

🇵🇹 diversificação

🇮🇳 विविधीकरण

🇩🇪 Diversifizierung

🇮🇩 diversifikasi

🇺🇦 диверсифікація

🇵🇱 dywersyfikacja

🇯🇵 多様化 (たようか)

🇫🇷 diversification

🇪🇸 diversificación

🇹🇷 çeşitlendirme

🇰🇷 다양화 (다양성)

🇸🇦 تنويع

🇨🇿 diverzifikace

🇸🇰 diverzifikácia

🇨🇳 多样化 (多樣化)

🇸🇮 diverzifikacija

🇮🇸 fjölbreytni

🇰🇿 диверсификация

🇬🇪 დივერსიფიკაცია

🇦🇿 diversifikasiya

🇲🇽 diversificación

Etymology

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.

See also: diversely, diversified, diversify, diversifying, diversity.

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.