Also called market risk, it is not due to the specific characteristics of a security, but rather depends on generic factors that affect the evolution of prices in the securities markets (general economic situation, political news, etc.). This risk cannot be controlled or reduced through diversification, as it is due to factors that affect the market as a whole (it is generally considered to be the minimum risk achievable through portfolio diversification). It is called market risk. because it constitutes the indicator of the aggregate risk of all the companies that are listed on it, referring to a determined period of time. To subsequently estimate the systematic risk of a market, a measurement of the risk of its reference indices is usually carried out, through the standard deviation of the historical series of such indicators.
Origin: CNMV