Assuming 30 trading days horizon, Shoshone Silver Mining Company is expected to under-perform the ImageWare. But the otc equity apears to be less risky and, when comparing its historical volatility, Shoshone Silver Mining Company is 1.14 times less risky than ImageWare. The otc equity trades about -0.27 of its potential returns per unit of risk. The ImageWare Systems Inc. is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 104.00 in ImageWare Systems Inc. on April 26, 2012 and sell it today you would lose (16.00) from holding ImageWare Systems Inc. or give up 15.38% of portfolio value over 30 days.
Diversification
Good diversification
Overlapping area represents amount of risk that can be diversified away by holding Shoshone Silver Mining Company and ImageWare Systems Inc. in the same portfolio (assuming nothing else is changed)