In a new blog post we discuss the proliferation of indices and metrics for computing concentration risk (and related diversification and inequality indices).
We go over the underlying reasons for such proliferation.
- Reason 1: Invented separately in many distinct domains
- Reason 2: Multiple names for essentially the same Index
- Reason 3: Generalized Families of Indexes
- Reason 4: The nature of the underlying data
- Reason 5: Distinct meaning and usability