Given investment horizon of 30 days, ChinaBiotics Inc. is expected to generate 1.58 times more return on investment than Herbalife. However, ChinaBiotics is 1.58 times more volatile than Herbalife Ltd.. It trades about -0.16 of its potential returns per unit of risk. Herbalife Ltd. is currently generating about -0.25 per unit of risk. If you would invest 143.00 in ChinaBiotics Inc. on April 25, 2012 and sell it today you would lose (64.00) from holding ChinaBiotics Inc. or give up 44.76% of portfolio value over 30 days.
Diversification
Average diversification
Overlapping area represents amount of risk that can be diversified away by holding ChinaBiotics Inc. and Herbalife Ltd. in the same portfolio (assuming nothing else is changed)