Given investment horizon of 30 days, Elizabeth Arden Inc. is expected to generate 0.4 times more return on investment than Avon. However, Elizabeth Arden Inc. is 2.53 times less risky than Avon. It trades about -0.32 of its potential returns per unit of risk. Avon Products Inc. is currently generating about -0.28 per unit of risk. If you would invest 3,948 in Elizabeth Arden Inc. on April 26, 2012 and sell it today you would lose (426.00) from holding Elizabeth Arden Inc. or give up 10.79% of portfolio value over 30 days.
Diversification
Significant diversification
Overlapping area represents amount of risk that can be diversified away by holding Elizabeth Arden Inc. and Avon Products Inc. in the same portfolio (assuming nothing else is changed)