idiosyncratic risk


The risk of price change due to the unique circumstances of a specific security, as opposed to the overall market. This risk can be virtually eliminated from a portfolio through diversification. also called unsystematic risk.

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It was an idiosyncratic risk and we all knew that it was something we had to do to be able to feel good.

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While we determined there was some idiosyncratic risk, overall the play seemed like it would be a possible high yield option.

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Exchange Traded Funds are a great way to diversify your portfolio enough to protect yourself from possible changes in price due to the idiosyncratic risk that can effect a single security.

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