IDEAS home Printed from https://ideas.repec.org/p/rza/wpaper/666.html
   My bibliography  Save this paper

Diversification measures and the optimal number of Stocks in a portfolio: An information theoretic explanation

Author

Listed:
  • Adeola Oyenubi

Abstract

This paper provides a plausible explanation for why the optimum number of stocks in a portfolio is elusive, and suggests a way to determine this optimal number. Diversification is dependent on the number of stocks in a portfolio and the correlation structure. Adding stocks to a portfolio increases the level of diversification, and consequently leads […]

Suggested Citation

  • Adeola Oyenubi, 2017. "Diversification measures and the optimal number of Stocks in a portfolio: An information theoretic explanation," Working Papers 666, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:666
    as

    Download full text from publisher

    File URL: https://econrsa.org/wp-content/uploads/2022/06/working_paper_666.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    econometric modelling; Information Systems; investment; Quantitative Methods;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rza:wpaper:666. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maggi Sigg (email available below). General contact details of provider: https://edirc.repec.org/data/ersacza.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.