Given investment horizon of 30 days, Autobytel Inc. is expected to under-perform the Baidu. In addition to that, Autobytel is 1.33 times more volatile than Baidu Inc.. It trades about -0.34 of its total potential returns per unit of risk. Baidu Inc. is currently generating about -0.23 per unit of volatility. If you would invest 13,482 in Baidu Inc. on April 24, 2012 and sell it today you would lose (1,253) from holding Baidu Inc. or give up 9.29% of portfolio value over 30 days.
Diversification
Modest diversification
Overlapping area represents amount of risk that can be diversified away by holding Autobytel Inc. and Baidu Inc. in the same portfolio (assuming nothing else is changed)