Assuming 30 trading days horizon, Imagenetix Inc. is expected to under-perform the Cyanotech. In addition to that, Imagenetix is 3.04 times more volatile than Cyanotech Corporation. It trades about -0.2 of its total potential returns per unit of risk. Cyanotech Corporation is currently generating about -0.21 per unit of volatility. If you would invest 992 in Cyanotech Corporation on April 26, 2012 and sell it today you would lose (232.00) from holding Cyanotech Corporation or give up 23.39% of portfolio value over 30 days.
Diversification
Good diversification
Overlapping area represents amount of risk that can be diversified away by holding Imagenetix Inc. and Cyanotech Corp. in the same portfolio (assuming nothing else is changed)