What Is an Unsystematic Risk?

Non-systematic risk is also called "non-market risk" and "dispersible risk". As opposed to "systemic risk". Risks not related to stock market, futures market, foreign exchange market and other related financial speculative market fluctuations. Non-systematic risks are caused by special factors, such as corporate management issues, and labor and capital issues of listed companies. They are unique to a certain enterprise or industry and only affect the returns of certain stocks. Non-systematic risks can be eliminated through diversification. ^[1]

Non-systemic risk

Right!

Non-systematic risk is also called "non-market risk" and "dispersible risk". As opposed to "systemic risk". Risks not related to stock market, futures market, foreign exchange market and other related financial speculative market fluctuations. Non-systematic risks are caused by special factors, such as corporate management issues, and labor and capital issues of listed companies. They are unique to a certain enterprise or industry and only affect the returns of certain stocks. Non-systematic risks can be eliminated through diversification. ^[1]

Non-systematic risk in English is nonsystematic Risk. The individual stock price is closely related to the operating performance and major events of listed companies. Changes in the company's operating management, financial status, market sales, major investments and other factors will affect the company's stock price trend. This kind of risk mainly affects a certain type of securities and has no direct connection with other securities in the market.

1. It is caused by special factors, such as corporate management issues, labor issues of listed companies, and so on.

2. It only affects the returns of certain stocks. It is that part of the risk that is unique to a business or industry. For example, stocks in the real estate industry will plummet when faced with a downturn in the real estate industry.

3.It can pass

The causes of non-systematic risks are mainly factors that directly affect the operation of the company, such as reduced management capabilities of listed companies, decline in product output, quality, decline in market share, aging of technical equipment and process levels, increase in raw material prices and individual Unpredictable natural disasters and man-made disasters occurred in listed companies. The occurrence of these events led to a decline in the operating profit of listed companies and even a loss, which caused

A large number of theme stocks and poor performance stocks may be under pressure from different aspects

The market is still not improving on Friday. Against the background of unsustainable hot spots on the floor, the focus of the market is undoubtedly the "break" of new shares of Air China. Both markets fell slightly to the close, with the Shanghai Index once again falling below the 1,600-point integer mark. In terms of trading volume, after deducting the transaction amount of the new shares of Air China, it has created a recent volume, and the market pattern of cowhide oscillation is relatively prominent.

Fundamentals increase risk of oscillation

Throughout the week's market trends, fundamentals still have a greater impact on market trends.

The first is that tightening expectations are still intensifying. In July, fixed asset investment continued to maintain a high growth trend, and investment growth in the energy and real estate industries also maintained a high growth trend. In this context, the pressure on some cyclical industries or industries that are more sensitive to regulation is obvious.

Second is the erratic policy orientation. The market rebound on Tuesday and Wednesday was suspended for two weeks and the management's initiative to increase the size of institutional investors' entry into the market was not unrelated, but on the evening of the Securities and Futures Commission website on Wednesday night, there were three companies including Dalian Zhangzidao Fishery Group Co., Ltd. News of the company meeting. Judging from the rhythm of this issuance and listing arrangement, the review suspension is obviously only to ensure the smooth listing of Air China, not for the needs of the market itself.

Third, the risk of interim performance needs to be prevented. Since this week, it has entered an intensive period of disclosure in listed companies. As of August 17, a total of 656 listed companies have disclosed their interim reports. It is worth noting that the next few reports of pre-reduction and pre-loss listed companies will also appear. Under the background of the overall market performance is not optimistic, the concentrated appearance of these poorly performing companies will still have a certain lethality to the market.

Structural differentiation is obvious

Due to the fund s highly concentrated holdings in the industry and some individual stocks in the second quarter, the game risk and liquidity risk have been mitigated since the beginning of July, but when the market continues to decline in the later part of the market, it will cause the above game risk and liquidity. Further release of sexual risks. Therefore, the primary task of the fund is to actively adjust the position structure. In the market environment where the market re-enters adjustments, active and passive fund adjustments may accelerate. In terms of disk performance, the financial and real estate sectors performed the most beautifully, such as GMB, G Vanke, etc. However, similar stock valuations of some military, consumer products, and restructuring expectations are still high, and they may still be adjusted further with the broader market.

It is also important to note that some negative factors affecting the market are beginning to emerge. On August 17th, G Hongsheng lifted 57.164 million restricted shares, and G Hongsheng was hit to the limit in the secondary market, becoming the first stock to fall due to the lifting of the ban by Xiao Fei. Structural effects are exposed.

Preventing non-systemic risks in the future

The market is oscillating this week, and the 1600-point integer mark has become the focus of the long and short game. However, from the perspective of market trading volume, the trading volume of the stock index during this week's rebound has not significantly increased, indicating that the momentum of continued rebound is relatively limited. At the same time, from the perspective of the differentiation of individual stocks, non-systematic risks in the market will begin to replace systemic risks in the future and become the primary risk that needs to be prevented. With the gradual and reasonable valuation, the flow and direction of incremental funds in the future will point to blue chips. However, a large number of subject matter stocks and poor performance stocks without performance support are not the same. Under the irrational valuation and the squeeze of financial innovation, they will be under pressure from different aspects. ^[2]