In my opinion, you can diversify at these levels:
Local (by headquarters, by turnover)
By currency
By industry
By company size (influences volatility)
I try to have as little overlap as possible in several areas in order to keep my portfolio robust.
Example:
$DRO (-3,45 %) and $PARRO (+0,96 %) : Similar industry, so both are driven by the same news, but have different locations and currencies.
$CACI (-0,23 %) Also has some correlation with the two, but is mainly dependent on the movements of the US military.
$8001 (+1,41 %) As a boring anchor
$SL (-2,73 %) As a "real" luxury play to profit from rising inequality and to have more euro/Italy in the portfolio.
$GRE (-2,23 %) Because I see great potential in Greece, see old post
