Assuming 30 trading days horizon, Emisphere Technologies Inc. is expected to under-perform the Alkermes. In addition to that, Emisphere is 3.79 times more volatile than Alkermes Inc.. It trades about -0.05 of its total potential returns per unit of risk. Alkermes Inc. is currently generating about -0.15 per unit of volatility. If you would invest 1,788 in Alkermes Inc. on April 26, 2012 and sell it today you would lose (174.00) from holding Alkermes Inc. or give up 9.73% of portfolio value over 30 days.
Diversification
Very good diversification
Overlapping area represents amount of risk that can be diversified away by holding Emisphere Technologies Inc. and Alkermes Inc. in the same portfolio (assuming nothing else is changed)