Following this theory, a portfolio containing a variety of assets poses less risk and ultimately yields higher returns than one holding just a few. Algorithmic trading Buy and hold Contrarian investing Day trading Dollar cost averaging Efficient-market hypothesis Fundamental analysis Growth stock Market timing Modern portfolio theory Momentum investing Mosaic theory Pairs trade Post-modern portfolio theory Random walk hypothesis Sector rotation Style investing Swing trading Technical analysis Trend following Value averaging Value investing. Individual investors trying to replicate this strategy will find the latter scenario of producing tainted alpha to be the preferred method of execution. This translates to systematic risk that cannot be held at a steady value. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The level of idiosyncratic risk individual security possesses is highly dependent on its own unique characteristics. Mai...