In this 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