Unsystematic risk

Unsystematic risk is also known as idiosyncratic risk or diversifiable risk. It refers to risks that are specific to an investment or asset. For example, the possibility that there is a sudden strike of employees in a particular company that causes it to shut down is considered unsystematic risk. It will only affect that particular stock.

Thus this risk can be reduced through appropriate diversification. See standard deviation and volatility.

Our site and the information it contains is not intended to US citizens, US residents, Canadian citizens or Canadian residents.

I am not a US citizen, US resident, Canadian citizen and/or Canadian resident
I am a US citizen, US resident, Canadian citizen and/or Canadian resident