Assuming 30 trading days horizon, Patel Engineering Ltd. is expected to generate 0.27 times more return on investment than Jaguar. However, Patel Engineering Ltd. is 3.74 times less risky than Jaguar. It trades about -0.53 of its potential returns per unit of risk. Jaguar Mining Inc. is currently generating about -0.32 per unit of risk. If you would invest 10,400 in Patel Engineering Ltd. on April 26, 2012 and sell it today you would lose (2,100) from holding Patel Engineering Ltd. or give up 20.19% of portfolio value over 30 days.
Diversification
Modest diversification
Overlapping area represents amount of risk that can be diversified away by holding Patel Engineering Ltd. and Jaguar Mining Inc. in the same portfolio (assuming nothing else is changed)