Systematic risk, also known as market risk, is risk inherent to the entire market or market segment.
 | | Systematic Risk | | Systematic risk is the risk inherent to the entire market or market segment. Systematic risk, also known as "undiversifiable risk," "volatility," or "market risk," affects the overall market, not just a particular stock or industry. This type of risk is both unpredictable and impossible to completely avoid. It cannot be mitigated through diversification, only through hedging or by using the correct asset allocation strategy. | | Breaking it Down: | | Systematic risk underlies other investment risks, such as industry risk. If an investor has placed too much emphasis on cybersecurity, for example... | | Read More » | | Related to "Systematic Risk" | | | | Idiosyncratic Risk | | Idiosyncratic risk refers to factors that impact a particular asset, versus systematic risk, which refers to broader trends that weigh on the whole market. | | Read More » | | | Risk Management | | Risk management occurs anytime an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment. | | Read More » | | | Country Risk | | Country risk is a term for a set of risks associated with investing in a particular country. | | Read More » | | |  | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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