Diversification is spreading exposure across positions whose outcomes are not driven by the same factors, so that no single event can decide the result of the portfolio. In legal assets it has to be measured along the axes that actually cause matters to move together.
Many positions do not equal many risks. If matters share a judge, a legal theory, a defendant, a law firm or a procedural regime, they can resolve in the same direction at the same time, and a portfolio of them is closer to one large bet.
Measuring diversification means mapping those shared drivers and reporting the concentration along each. Duration concentration matters as much as outcome concentration, since a book whose matters all depend on one court's calendar can be squeezed together.
Diversification is not achieved by count alone and does not remove outcome risk. It reduces the dependence of the whole on any one cause.
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