Assuming 30 trading days horizon, Lafarge S.A. is expected to generate 0.34 times more return on investment than Emerging. However, Lafarge S.A. is 2.94 times less risky than Emerging. It trades about -0.29 of its potential returns per unit of risk. Emerging Media Holdings Inc. is currently generating about -0.2 per unit of risk. If you would invest 4,380 in Lafarge S.A. on April 26, 2012 and sell it today you would lose (720) from holding Lafarge S.A. or give up 16.44% of portfolio value over 30 days.
Diversification
Good diversification
Overlapping area represents amount of risk that can be diversified away by holding Lafarge S.A. and Emerging Media Holdings Inc. in the same portfolio (assuming nothing else is changed)