By investing in a number of securities (as opposed to investing in a single security), you can profit from diversification and reduce the level of risk in your investment portfolio.
The following portfolio is a low risk portfolio built in November 2019 and tracked through the end of 2020.
The chart shows a comparison with leading indices all of which are high risk.
The portfolio achieved this high level of risk through diversification:
It holds a relatively high number of securities - 37 all together.
It holds securities from three exchanges - NYSE, NASDAQ and AMEX.
The securities are from 8 different sectors.
That is how a low risk portfolio manages to hold its own among high risk indices and even out perform most of them.
Cherries archives and optimized and well diversified portfolio through extensive analysis of historical data. Cherries retrieves information from major capital markets to perform its calculations and uses a powerful mathematical calculation engine, capable of analyzing up to 5,000 securities in a single calculation.
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