Currency diversification
Spreading holdings across currencies so that the portfolio's result does not depend entirely on the rate of any single one.
How to read the number
The starting point is the currency of future spending rather than whichever currency feels solid: a portfolio serves expenses, and it is sensible to anchor it to them.
When the metric lies
A security traded in roubles does not necessarily carry rouble risk — an exporter's revenue follows external prices. The reverse holds too: in stress a foreign-currency asset can move together with the local market rather than against it.
Also known as: multi-currency allocation