Residual Risk:
The proportion of an export credit which is not insured/guaranteed by an export credit agency.
Français: Risque résiduel
Español: Riesgo residual ...
Residual risk
When you buy an ASSET you become exposed to a bundle of different RISKs.
Residual risk
Related: Unsystematic risk
Residuals
(1) Part of stock returns not explained by the explanatory variable (the market index return). Residuals measure the impact of firm-specific events during a particular period.
Information Ratio The ratio of annualized expected residual return to residual risk. A central measurement for active management, value added is proportional to the square of the information ratio.
Alpha A measure of selection risk (also known as residual risk) of a mutual fund in relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk, instead of accepting the market return.
Alpha A measure of selection risk (also known as residual risk) of a in relation to the market. A positive alpha is the extra awarded to the for taking a risk, instead of accepting the market return. For example, an alpha of 0.
Also called the diversifiable risk or residual risk. The risk that is unique to a company
such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification.
Related: systematic risk ...
Net risk (also known as 'Residual Risk')
A net risk is de?ned as the result of an assessment of the potential impact and likelihood of a risk after taking account of the design adequacy and operating effectiveness of the controls put in place to ...
Also called the diversifiable risk, residual risk, or company-specific risk, the risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe. Related: systematic risk ...
where the alpha, beta and residual risk of A are found using the previously computed weights wi in the obvious way
[edit] References
^ Kane et al.
If futures are used to hedge a long or short position in an underlier, residual risk will remain due to the spread between the futures price and the underliers spot price. That spread is called the futures' basis.
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The ratio of annualized expected residual return to residual risk. A central measurement for active management, value added is proportional to the square of the information ratio.
Information services ...
and controls, insurance risk (including catastrophes), business risk factors (including interest rate, securitization, and residual risks), concentration risk, high-impact low-probability events, and cyclicality and capital planning.
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By contrast, the unique risk (also called specific risk, residual risk, unsystematic risk) expresses the degree of securities correlation and is not associated with market returns.
Typical characteristics of Small Capitalization portfolios are below-market dividend yields, above-market betas, and high residual risk relative to broad market indexes. All returns are net of fees.
Total risk is measured by the standard deviation of returns and it is the standard deviation that should be used to compare mutual funds. Beta is a measure of residual risk, i.e., the risk inherent in the overall market.
In derivatives hedging, a residual risk that arises because the movement in a spot (cash) asset's price is not perfectly correlated with the movement in the price of the asset delivered under a forward, futures or option contract.
Also known as "specific risk", "diversifiable risk" or "residual risk".
The Capital Asset Pricing Model: An Overview
Modern Portfolio Theory: Why It's Still Hip
Determining Risk And The Risk Pyramid
Building An All-ETF Portfolio ...
Like any insurance, monoline insurance is a transfer of risk. The default risk is transferred from bold holders to the insurer. Bondholders are left only with the residual risk that the monoline insurer will also default.
Unsystematic Risk - Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through appropriate diversification.
Also known as "specific risk", "diversifiable risk" or "residual risk".
Residual risk Related: unsystematic risk. Residual value Usually refers to the value of a lessor's property at the time the lease expires. Resistance level A price level above which it is supposedly difficult for a security or market to rise.
 See also: Systematic risk, Expected return, Unsystematic risk, Risk factor, Expense
  
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