Systematic risk is market risk, which refers to the influence of overall political, economic, social and other environmental factors on securities prices. Systematic risks include policy risk, economic cyclical fluctuation risk, interest rate risk, purchasing power risk and exchange rate risk. The identification of systemic risk is to judge the macroeconomic situation of a country in a certain period of time. It means that it has a general adverse impact on the entire stock market or most stocks. Generally, it includes economic and other factors that affect the overall situation. Such as a serious crisis in the world economy or a country's economy, rising inflation, catastrophic natural disasters and so on.

Nonsystematic risk is also called non-market risk or distributable risk. It is a risk that has nothing to do with the fluctuation of the whole stock market or the whole futures market or foreign exchange market and other related financial speculation markets. It refers to the possibility that the price of a single stock or a single futures, foreign exchange varieties and other financial derivatives will fall due to changes in some factors, thus bringing losses to securities holders. Main features:

1 is caused by special factors, such as management problems of enterprises and employment problems of listed companies.

2. Only affect the earnings of some stocks. It is the part of risk that is unique to a certain enterprise or industry. If the real estate industry votes, there will be a downturn in the real estate industry.

3. It can be reduced by diversifying investment, but it cannot be completely eliminated. Because unsystematic risk is individual risk, which is brought by controllable factors such as individuals, enterprises or industries, investors can resolve unsystematic risk by diversifying their investments.

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