Assuming 30 trading days horizon, Rana Sugars Ltd. is expected to generate 0.38 times more return on investment than Pacific. However, Rana Sugars Ltd. is 2.61 times less risky than Pacific. It trades about -0.15 of its potential returns per unit of risk. Pacific Environment Limited is currently generating about -0.09 per unit of risk. If you would invest 349.00 in Rana Sugars Ltd. on April 26, 2012 and sell it today you would lose (45.00) from holding Rana Sugars Ltd. or give up 12.89% of portfolio value over 30 days.
Diversification
Pay attention
Overlapping area represents amount of risk that can be diversified away by holding Rana Sugars Ltd. and Pacific Environment Limited in the same portfolio (assuming nothing else is changed)