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Corporate �Herfindahl Index�
A variation of the Herfindahl Index applied to measure concentration within a corporation's portfolio of businesses.
Implications
A measure used to assess the concentration of market power within a corporate group, similar to the traditional Herfindahl Index used in market concentration analysis, often used to evaluate the diversity of a company�s portfolio.
Example
Example: A conglomerate calculates its Corporate Herfindahl Index to assess whether its business units are too concentrated in a single industry, which could increase risk.
Related Terms
Different from the standard Herfindahl Index, which measures market concentration within an industry, the Corporate Herfindahl Index focuses on concentration within a corporate portfolio.
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