Given investment horizon of 30 days, Baidu Inc. is expected to generate 0.58 times more return on investment than Akamai. However, Baidu Inc. is 1.72 times less risky than Akamai. It trades about -0.28 of its potential returns per unit of risk. Akamai Technologies Inc. is currently generating about -0.33 per unit of risk. If you would invest 13,321 in Baidu Inc. on April 25, 2012 and sell it today you would lose (1,495) from holding Baidu Inc. or give up 11.22% of portfolio value over 30 days.
Diversification
Weak diversification
Overlapping area represents amount of risk that can be diversified away by holding Baidu Inc. and Akamai Technologies Inc. in the same portfolio (assuming nothing else is changed)