Assuming 30 trading days horizon, Human Pheromone Sciences Inc. is expected to generate 1.28 times more return on investment than Avon. However, Human is 1.28 times more volatile than Avon Products Inc.. It trades about -0.21 of its potential returns per unit of risk. Avon Products Inc. is currently generating about -0.28 per unit of risk. If you would invest 4.00 in Human Pheromone Sciences Inc. on April 26, 2012 and sell it today you would lose (1.00) from holding Human Pheromone Sciences Inc. or give up 25.0% of portfolio value over 30 days.
Diversification
Average diversification
Overlapping area represents amount of risk that can be diversified away by holding Human Pheromone Sciences Inc. and Avon Products Inc. in the same portfolio (assuming nothing else is changed)