Given investment horizon of 30 days, Columbia Laboratories Inc. is expected to generate 0.35 times more return on investment than Emisphere. However, Columbia Laboratories Inc. is 2.87 times less risky than Emisphere. It trades about -0.07 of its potential returns per unit of risk. Emisphere Technologies Inc. is currently generating about -0.03 per unit of risk. If you would invest 68.00 in Columbia Laboratories Inc. on April 25, 2012 and sell it today you would lose (4.00) from holding Columbia Laboratories Inc. or give up 5.88% of portfolio value over 30 days.
Diversification
Weak diversification
Overlapping area represents amount of risk that can be diversified away by holding Columbia Laboratories Inc. and Emisphere Technologies Inc. in the same portfolio (assuming nothing else is changed)