Considering 30-days investment horizon, Hospira Inc. is expected to generate 0.14 times more return on investment than Emisphere. However, Hospira Inc. is 7.02 times less risky than Emisphere. It trades about -0.26 of its potential returns per unit of risk. Emisphere Technologies Inc. is currently generating about -0.05 per unit of risk. If you would invest 3,542 in Hospira Inc. on April 26, 2012 and sell it today you would lose (304.00) from holding Hospira Inc. or give up 8.58% of portfolio value over 30 days.
Diversification
Good diversification
Overlapping area represents amount of risk that can be diversified away by holding Hospira Inc. and Emisphere Technologies Inc. in the same portfolio (assuming nothing else is changed)