RT Journal Article SR Electronic T1 Practical Applications of The Diversification Delta: A Higher-Moment Measure for Portfolio Diversification JF Practical Applications FD Institutional Investor Journals SP 1 OP 3 DO 10.3905/pa.2013.1.2.008 VO 1 IS 2 A1 Maximilian A. Vermorken A1 Francesca R. Medda A1 Thomas Schröder A1 Joanna Wrighton YR 2013 UL https://pm-research.com/content/1/2/1.8.abstract AB The Diversification Delta: A Higher-Moment Measure for Portfolio Diversification Maximilian A. Vermorken Francesca R. Medda Thomas Schröder The limitations to traditional measures of portfolio diversification, including the ability to protect against catastrophic events, were revealed in the 2008 global financial crisis.In The Diversification Delta: A Higher-Moment Measure for Portfolio Diversification , published in the Fall 2012 issue of The Journal of Portfolio Management , authors Maximilian A. Vermorken, Francesca R. Medda and Thomas Schröder introduce a new measure for diversification that aims to take into account these unexpected events.“We are looking at new ways to treat information in a world where things can go badly wrong,” Vermorken, a Research Fellow at the QASER Laboratory at University College London in the UK, says in an interview.This Practical Applications report details the tool introduced by the authors to measure the impact of catastrophic events on stock and bond portfolios. They call it the diversification delta.Medda is an Associate Professor of Applied Economics at University College London and Director of the QASER Laboratory. Schröder is an Adjunct Professor of Finance at the John F. Welch College of Business, Sacred Heart University , in Luxembourg, and a Fellow of the QASER Laboratory.