Traditional Investing & Portfolio Theory

What is diversification in a portfolio?

Diversification is spreading investments across different assets, sectors, or classes so that no single holding determines the portfolio's outcome. Because varied assets often respond differently to the same event, combining them can reduce the impact of any one position falling. For example, holding several uncorrelated assets means a sharp drop in one need not sink the whole portfolio. Diversification manages exposure to specific risks; it does not eliminate market-wide risk or assure a positive return. A curated index built across multiple holdings is one way Qatobit applies this principle; review the methodology to see how.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.