Considering 30-days investment horizon, Salesforce.com is expected to generate 2.84 times more return on investment than S A P. However, Salesforce is 2.84 times more volatile than SAP AG. It trades about -0.02 of its potential returns per unit of risk. SAP AG is currently generating about -0.51 per unit of risk. If you would invest 15,620 in Salesforce.com on April 25, 2012 and sell it today you would lose (999) from holding Salesforce.com or give up 6.4% of portfolio value over 30 days.
Diversification
Modest diversification
Overlapping area represents amount of risk that can be diversified away by holding Salesforce.com and SAP AG in the same portfolio (assuming nothing else is changed)