Systemic returns

The return from any investment is comprised of a systemic return and an idiosyncratic return. Systemic returns are ones that are common to more than one company while idiosyncratic returns are returns that are unique to one company. For example, the rise in shares of exporters that is the result of depreciation of Sterling would be systematic. While the fall in the shares of company ABC plc due the resignation of the CEO would be idiosyncratic.