Given investment horizon of 30 days, Global Sources Ltd. is expected to under-perform the Baidu. In addition to that, Global is 1.39 times more volatile than Baidu Inc.. It trades about -0.21 of its total potential returns per unit of risk. Baidu Inc. is currently generating about -0.27 per unit of volatility. If you would invest 13,444 in Baidu Inc. on April 26, 2012 and sell it today you would lose (1,685) from holding Baidu Inc. or give up 12.53% of portfolio value over 30 days.
Diversification
Pay attention
Overlapping area represents amount of risk that can be diversified away by holding Global Sources Ltd. and Baidu Inc. in the same portfolio (assuming nothing else is changed)