Assuming 30 trading days horizon, ImageWare Systems Inc. is expected to under-perform the Iomart. In addition to that, ImageWare is 2.87 times more volatile than Iomart Group PLC. It trades about -0.06 of its total potential returns per unit of risk. Iomart Group PLC is currently generating about -0.02 per unit of volatility. If you would invest 14,000 in Iomart Group PLC on April 26, 2012 and sell it today you would lose (500.00) from holding Iomart Group PLC or give up 3.57% of portfolio value over 30 days.
Diversification
Modest diversification
Overlapping area represents amount of risk that can be diversified away by holding ImageWare Systems Inc. and Iomart Group PLC in the same portfolio (assuming nothing else is changed)