There is no correlation between the unsystematic risk of two companies from different industries.
What is unsystematic risk?
Unsystematic risk is a type of risk that is particular to a given business or sector. It is also referred to as residual risk, specific risk, diversifiable risk, and nonsystematic risk. While systematic risk is the danger that is built into the market, unsystematic risk can be decreased in the context of an investment portfolio by diversifying.
Uncertainty built into a business or industry investment is known as unsystematic risk. Unsystematic risk examples include a new rival entering the market with the potential to capture a sizable portion of the invested business's market share, a change in regulations (which could reduce company sales), a change in management, or a product recall.
There is no correlation between the unsystematic risk of two companies from different industries.
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