Given investment horizon of 30 days, Cyanotech Corporation is expected to generate 0.66 times more return on investment than Herbalife. However, Cyanotech Corporation is 1.51 times less risky than Herbalife. It trades about -0.1 of its potential returns per unit of risk. Herbalife Ltd. is currently generating about -0.25 per unit of risk. If you would invest 939 in Cyanotech Corporation on April 25, 2012 and sell it today you would lose (164.00) from holding Cyanotech Corporation or give up 17.47% of portfolio value over 30 days.
Diversification
Good diversification
Overlapping area represents amount of risk that can be diversified away by holding Cyanotech Corp. and Herbalife Ltd. in the same portfolio (assuming nothing else is changed)