Asset Comparison and Correlation

Given investment horizon of 30 days, Gravity Ltd is expected to under-perform the ImageWare. But the stock apears to be less risky and, when comparing its historical volatility, Gravity Ltd is 1.91 times less risky than ImageWare. The stock trades about -0.13 of its potential returns per unit of risk. The ImageWare Systems Inc. is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 104.00 in ImageWare Systems Inc. on April 26, 2012 and sell it today you would lose (16.00) from holding ImageWare Systems Inc. or give up 15.38% of portfolio value over 30 days.