For simplicity, I'll stick to equities. Idiosyncratic risks are risks that uniquely affect a single company. Systematic risks are macroeconomic, geopolitical, or other broad based risks that affect an entire market, or large set of stocks with one or more common properties that render them exposed to the risk.Once you get this deep in the weeds, you really need precise definitions of diversification, idiosyncratic risk, and systematic risk, preferably mathematical.
Statistics: Posted by Northern Flicker — Sun Dec 07, 2025 1:31 am — Replies 37 — Views 1940