Asset Comparison and Correlation

Assuming 30 trading days horizon, SP 500 is expected to generate 4.56 times less return on investment than Salix. But when comparing it to its historical volatility, S&P 500 is 2.42 times less risky than Salix. It trades about 0.32 of its potential returns per unit of risk. Salix Pharmaceuticals Ltd is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest  5,151  in Salix Pharmaceuticals Ltd on April 25, 2013 and sell it today you would earn a total of  888  from holding Salix Pharmaceuticals Ltd or generate 17.24% return on investment over 30 days.