Assuming 30 trading days horizon, Emisphere Technologies Inc. is expected to under-perform the Acura. In addition to that, Emisphere is 2.55 times more volatile than Acura Pharmaceuticals Inc.. It trades about -0.05 of its total potential returns per unit of risk. Acura Pharmaceuticals Inc. is currently generating about -0.06 per unit of volatility. If you would invest 326.00 in Acura Pharmaceuticals Inc. on April 26, 2012 and sell it today you would lose (21.00) from holding Acura Pharmaceuticals Inc. or give up 6.44% of portfolio value over 30 days.
Diversification
Good diversification
Overlapping area represents amount of risk that can be diversified away by holding Emisphere Technologies Inc. and Acura Pharmaceuticals Inc. in the same portfolio (assuming nothing else is changed)