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
More Related Terms

Related Links

Risk And Diversification - Safeguarding your portfolio involves a few simple steps.
Introduction To Diversification - Reducing risk and increasing returns in your portfolio is all about finding the right balance.
Determining Risk And The Risk Pyramid - Many investors do not understand how to determine the level of risk their individual portfolios should bear.
Bettering Your Portfolio With Alpha And Beta - Increase your returns by creating the right balance of both these risk measures.
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Adding Alpha Without Adding Risk - Learn how to generate higher returns while keeping the same risk profile.

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