Assuming 30 trading days horizon, Moly Mines Ltd. is expected to generate 0.83 times more return on investment than MPX Energia. However, Moly Mines Ltd. is 1.21 times less risky than MPX Energia. It trades about -0.21 of its potential returns per unit of risk. MPX Energia SA is currently generating about -0.38 per unit of risk. If you would invest 20.00 in Moly Mines Ltd. on April 26, 2012 and sell it today you would lose (3.00) from holding Moly Mines Ltd. or give up 15.0% of portfolio value over 30 days.
Diversification
Very good diversification
Overlapping area represents amount of risk that can be diversified away by holding Moly Mines Ltd. and MPX Energia SA in the same portfolio (assuming nothing else is changed)