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1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

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Diversification effect

Technical analysis

The tendency for company-specific surprises to partly cancel out within an index, leaving it less volatile than its constituents.

In plain terms

It is why mean reversion has a genuine basis on an index and a shaky one on a single stock.

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Indian stock market glossary · Market Vidyalaya