Bigger stocks are more exposed to the turmoil overseas
Analysts have attributed some of that volatility to developments abroad. Or, more concretely, to China.
In light of that, it's worth taking a look at which kinds of companies are the most exposed to international economies.
In a recent note to clients, Credit Suisse US equity strategist Lori Calvasina shared a chart that shows large caps get about 38% of their revenues outside of the US, compared with around 21% for small caps.
Furthermore, "mega caps" are even more exposed to the international economy. Companies that make up the S&P 100 get about 46% of their revenues from abroad, and those that make up the Russell Top 200 get about 41%.
Notably, the Asia Pacific and Australia region's revenue exposure is listed as just 6% for large and mega caps, and around 4% for small caps.
However, "[t]hese numbers may be low, as many companies do not break out regional exposures, but lump all non-US exposure into an international or foreign bucket," writes Calvasina. "Most companies do not report a breakout for China specific exposure but we suspect that it is the highest in large cap and mega cap."
Check it out below.
