The number of separate businesses a firm operates and the degree of  relatedness of those businesses increase a firm's level of diversification.
What is Diversification?
By introducing or acquiring new items, businesses can increase their market share or access new markets (perhaps through licensing, merger, or acquisition). It enables a business to develop by raising its market share in an already-existing market or by establishing a presence in that market. Innovation and market disruption are fundamental components of diversification.
In an effort to lower portfolio risk, the concept of diversification combines a wide range of investments. Investing in several asset classes, such as stocks, bonds, real estate, or cryptocurrencies, is the most common way to diversify one's portfolio.
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