Considering 30-days investment horizon, Johnson & Johnson is expected to generate 0.32 times more return on investment than SanofiAventis. However, Johnson & Johnson is 3.09 times less risky than SanofiAventis. It trades about -0.36 of its potential returns per unit of risk. SanofiAventis is currently generating about -0.31 per unit of risk. If you would invest 6,484 in Johnson & Johnson on April 26, 2012 and sell it today you would lose (233.00) from holding Johnson & Johnson or give up 3.59% of portfolio value over 30 days.
Diversification
Modest diversification
Overlapping area represents amount of risk that can be diversified away by holding Johnson & Johnson and SanofiAventis in the same portfolio (assuming nothing else is changed)