Given investment horizon of 30 days, China Sky One Medical Inc. is expected to under-perform the Mannatech. But the stock apears to be less risky and, when comparing its historical volatility, China Sky One Medical Inc. is 1.38 times less risky than Mannatech. The stock trades about -0.14 of its potential returns per unit of risk. The Mannatech Inc. is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 427.00 in Mannatech Inc. on April 25, 2012 and sell it today you would lose (3.00) from holding Mannatech Inc. or give up 0.7% of portfolio value over 30 days.
Diversification
Significant diversification
Overlapping area represents amount of risk that can be diversified away by holding China Sky One Medical Inc. and Mannatech Inc. in the same portfolio (assuming nothing else is changed)