Naive Diversification and partition dependence (how is this diff)

Naive diversification is an investing strategy designed to reduce risk by allocating investments across multiple sectors, countries, and other asset classes. It is based on the idea that spreading investments across multiple asset classes can protect an investor from the risk associated with investing in a single asset class. Partition dependence, on the other hand, doesn’t involve allocating investments across multiple sectors, countries, or asset classes. Instead, it involves allocating investments using mathematical equations called “partitions” based on specific desired outcomes. This type of approach seeks to reduce risk by targeting investments to move in a particular direction (such as an increase in value), rather than simply diversifying investments across multiple categories.