skycfa

lol no charter holder is specific enough


scenario testing is akin to saying what if war break out in the Saudi Arabia ( for example ) how will variables change and it affect the model/portfolio

stress testing is just moving the price of oil to various extremes to see the effect on the model/portfolio

skycfa

According to what I understand the major difference is:

Scenario Analysis: How a portfolio will perform, given various changes, during a SPECIFIC period of time

Stress testing: How a portfolio will perform, given various changes, during a FINANCIAL CRISIS or MAJOR DISASTERS