Idiosyncratic Risk

What Does Idiosyncratic Risk Mean?
Risk that affects a very small number of assets, and can be almost eliminated with diversification. Similar to unsystematic risk.

Investopedia explains Idiosyncratic Risk
This is news that is specific to a small number of stocks. One example is a sudden strike by employees.

Related Terms

Assymetric Volatility
Diversification
Time-Period Basis
Unsystematic Risk
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