Our Industry Systematic Risk Research

Risks of the investment like shadows, which always associated with returns. Investment risks include systematic risk and non-systematic risk, the latter can be eliminated through portfolio diversification. Therefore, systematic risk is the most important part of the income. For investors, analyze and reduce systemic risk accurately is the prerequisite for success. Industry is an important factor, which is between macro and micro economic factors, Industry analysis is very important for the investors to choose the most valuable investments, to avoid investment risks, and get higher return. Therefore, research on the industry systematic risk can provide some guidance for investors.This paper focuses on systematic risk of industries. Firstly introduced the theory of systemic risk and collated the relevant literature review. Then, estimated systematic risk of industries using the dynamic model, compared them with major countries and regions in the word., analyzed the structure of systematic risk of industries. The conclusion is that industry systematic risk is relatively high in China. Secondly, tested the difference of systematic risk among industries using a variety of test methods. The results show that the risk of the industry is significant difference and the differences are unstable. Thirdly, analyzed factors of the industry systematic risk from a macro perspective using the VAR model. And further explained macroeconomic factors lead to the difference of the industry's systematic risk.Finally, we summarized the research and proposed directions for further research.