Asset Comparison and Correlation

Considering 30-days investment horizon, British American Tobacco plc is expected to under-perform the Philip. But the stock apears to be less risky and, when comparing its historical volatility, British American Tobacco plc is 1.02 times less risky than Philip. The stock trades about -0.34 of its potential returns per unit of risk. The Philip Morris International Inc. is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 8,855 in Philip Morris International Inc. on April 25, 2012 and sell it today you would lose (321.00) from holding Philip Morris International Inc. or give up 3.63% of portfolio value over 30 days.