StanChart Says FX More Efficient Than Stocks to Trade Swings
- Risk-adjusted returns for some currencies beat S&P: StanChart
- Sterling, ringgit, krone among promising candidates: analysis
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Investors who want to trade big swings in risk sentiment may want to venture outside the typical U.S. stocks play and consider currencies, according to analysts at Standard Chartered Plc.
An analysis of how the S&P 500 Index and currencies traded relative to their volatility indicated that some foreign exchanges were more efficient in capturing the shifts through the Feb. 19 to March 23 period, strategists Ilya Gofshteyn and Steve Englander wrote. The British pound, the Malaysian ringgit, and Norwegian krone offered a better risk-adjusted return whether during the sell-off or the partial rebound in markets, they said.