Category: Money tips Release Date: 2006-01-03
Portfolio is risk diversification theory, in practice they operated. In order to minimize the combination may face risks, we should be comprehensive consideration three factors, namely, horizontal linkages of investment and investment linkages, as well as the vertical correlation of investment.
An investment of horizontal linkages. It mainly refers to the investors, cross-sectoral, inter-regional investment behavior when used. Period from the investment point of view, can be divided into long, medium and short-term investment portfolio. In general, the longer term, higher returns, but the greater the risk. On the contrary, the shorter the period, revenue lower, but the risk will be reduced accordingly. In order to take into account the liquidity of investment, security and profitability to deal with three kinds of investment in a reasonable way they are combined duration of use, rather than focus on a certain period of investment. Once this temporary cash needs, is not bound to long-term investments for short-term liquidity, which suffered huge losses. From the investment point of view, can be direct investment, indirect investment in a combination, securities investment and business investment combined, integrated use of the trust and investment, leasing investments, mergers and acquisitions investment, a variety of ways to achieve the purpose of profit and loss complement each other.
Second, investment in vertical linkages. It can be analyzed in two ways, one is an individual investments to invest in continuity; the second is the object of a specific individual investment amount of investment. Investors often have a paranoid mentality that is too much focus on specific securities while ignoring the other. In fact, people have a preference for the more, the easier it is bound to live. Therefore, we suggest that investors ought to "look wide heaven and earth," pay more attention to a number of varieties, so as to minimize risk, get the best return on investment purposes.
Third, the relationship between the level of individual investment asked. It refers to investment in the industries in which the object itself, the closeness between. Generally consists of complementary and alternative types, such as real estate development and infrastructure sectors have a very close relationship between the extent of the food processing and electronics industry, the association between lower levels. Grasp the extent of the linkages between investment, will help us in a timely manner from a change in the development of the industry itself, to predict the development trend of related industries in order to make the best portfolio.
