The number of stocks in a strategy will impact the performance of the portfolio created from that strategy. Using a smaller portfolio size will generally outperform but at higher levels of volatility – a single stock can have a larger influence on the portfolio. A larger portfolio will have a beta closer to 1 as will become more consistent with market movements.
Strategy
Value
Technical
Quality
Dividend
Health
Persona
Number of Stocks
Definition
The number of stocks in a strategy will impact the performance of the portfolio created from that strategy. Using a smaller portfolio size will generally outperform but at higher levels of volatility – a single stock can have a larger influence on the portfolio. A larger portfolio will have a beta closer to 1 as will become more consistent with market movements.
Strategy
Value
Technical
Quality
Dividend
Health
Persona