Given investment horizon of 30 days, Flamel Technologies SA is expected to under-perform the Acura. But the stock apears to be less risky and, when comparing its historical volatility, Flamel Technologies SA is 1.8 times less risky than Acura. The stock trades about -0.54 of its potential returns per unit of risk. The Acura Pharmaceuticals Inc. is currently generating about -0.06 of returns per unit of risk over similar time horizon. 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
Very good diversification
Overlapping area represents amount of risk that can be diversified away by holding Flamel Technologies SA and Acura Pharmaceuticals Inc. in the same portfolio (assuming nothing else is changed)