Hedging:
4.
1. Use financial instruments like options and futures to hedge against market risks.
2. For instance, put options can protect against potential losses in stock prices.
5.
Global Diversification:
6.
1. Invest in international markets to mitigate risks specific to one region or country.
2. Economic slowdowns in one country may be offset by growth in another.
7.
Stay Updated:

1. Monitor economic indicators, interest rate trends, and geopolitical developments.
2. React proactively to signals of market volatility.
Strategies for Unsystematic Risk
1.
Diversification:

1. Build a portfolio with a mix of stocks from various sectors and industries.
2. Diversification spreads risk and reduces dependency on any single stock.

Research and Due Diligence:

1. Analyze a company’s financial health, management quality, and competitive position before investing.
2. Look for stable companies with strong fundamentals.

Limit Concentration:

1. Avoid over-allocating funds to a single stock or sector.
2. Set limits on how much of your portfolio is exposed to specific investments.

Active Monitoring:

1. Regularly review the performance of your investments.
2. Be prepared to exit positions if company-specific risks escalate