Utilizing the fact that two or more asset values do not always move in the same direction at the same time in order to reduce the risk of a portfolio is called diversification.

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Diversification is the process of spreading an investment across different assets in order to reduce the risk of the portfolio. This is based on the idea that the performance of one asset is not wholly dependent on the performance of another asset, and that two or more assets may move in opposite directions at any given time. By diversifying the portfolio, investors can mitigate the risks associated with having all assets in one type of investment or industry.

Utilizing the Fact That Two or More Asset Values Do