Given investment horizon of 30 days, Ediets.com Inc. is expected to generate 3.43 times more return on investment than China. However, Ediets is 3.43 times more volatile than China Finance Online Ltd.. It trades about -0.01 of its potential returns per unit of risk. China Finance Online Ltd. is currently generating about -0.22 per unit of risk. If you would invest 45.00 in Ediets.com Inc. on April 25, 2012 and sell it today you would lose (8.00) from holding Ediets.com Inc. or give up 17.78% of portfolio value over 30 days.
Diversification
Very good diversification
Overlapping area represents amount of risk that can be diversified away by holding Ediets.com Inc. and China Finance Online Co. Ltd. in the same portfolio (assuming nothing else is changed)