Given investment horizon of 30 days, Nektar Therapeutics is expected to generate 0.32 times more return on investment than Delcath. However, Nektar Therapeutics is 3.16 times less risky than Delcath. It trades about -0.17 of its potential returns per unit of risk. Delcath Systems Inc. is currently generating about -0.27 per unit of risk. If you would invest 787 in Nektar Therapeutics on April 26, 2012 and sell it today you would lose (91.00) from holding Nektar Therapeutics or give up 11.56% of portfolio value over 30 days.
Diversification
Modest diversification
Overlapping area represents amount of risk that can be diversified away by holding Nektar Therapeutics and Delcath Systems Inc. in the same portfolio (assuming nothing else is changed)