Less follow-up by analysts

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Small-cap stocks often receive less attention from analysts and the financial press compared to large companies. This is because analysts tend to focus on larger, better-known companies, where they believe there is more information available and less risk.

However, this lack of coverage can be an advantage for hong kong phone number data investors interested in small caps. Because they are not as widely followed by analysts, the market may underestimate their true value, which can create attractive investment opportunities for those willing to do their own research and analysis.

4. Portfolio diversification.
Including small-cap stocks in our investment portfolio can help us diversify risk. By combining stocks of different sizes and sectors, we are reducing our dependence on a single type of investment.

Small Caps have a lower correlation with large cap stocks, meaning their performance may be less affected by broader market movements. This can be especially beneficial in times of volatility, as having a diversified portfolio gives us greater protection and allows us to take advantage of opportunities in different areas.