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portfolio effect

The change in the value of a portfolio in response to a change in the value of one of the assets in the portfolio, weighted according to what percentage of the portfolio that asset represents. If shares of a certain stock that makes up half of a portfolio and the stock drops by ten percent, the portfolio effect is a value decrease of five percent.

Related information about portfolio effect:
  1. Portfolio Effect - Financial Dictionary - The Free Dictionary
    The reduction in the value of a portfolio relative to the reduction in value of the individual assets represented in that portfolio. The portfolio effect is weighted for ...
     
  2. Ecosystem services - Wikipedia, the free encyclopedia
    3.1 Redundancy hypothesis; 3.2 Portfolio effect. 4 Economics .... A third explanation, known as the portfolio effect, compares biodiversity to stock holdings , where ...
     
  3. portfolio effect - Business Definition
    portfolio effect definition: A reduction in the variation of returns on a combination of assets compared with the average of the variations of the individual assets.
     
  4. What is portfolio effect? definition and meaning
    Definition of portfolio effect: The change in the value of a portfolio in response to a change in the value of one of the assets in the portfolio, weighted according to ...
     
  5. Schindler et al: Portfolio Effects in Sockeye Salmon
    Such variance dampening within communities is referred to as a portfolio effect and is analogous to the effects of asset diversity on the stability of financial ...
     
  6. Population diversity and the portfolio effect in an exploited species ...
    Jun 3, 2010 ... Such variance dampening within communities is referred to as a portfolio effect and is analogous to the effects of asset diversity on the stability ...
     
  7. Dependence Models and the Portfolio Effect
    Key words: dependence models, Normal copula, portfolio effect, capital allocation. ... In other words, what is the "portfolio effect" -- the diversification benefit of ...
     
  8. Definition of the Portfolio Effect | eHow.com
    Definition of the Portfolio Effect. The portfolio effect is an investment term. When you add more diversity to your investment portfolio, you take on less risk.