Effective Stress Testing Approaches in Asset Management

XYZ Asset Management is conducting a stress test on its multi-asset portfolio, which includes equities, fixed income, and commodities. The firm aims to assess the portfolio's performance under extreme market conditions, including a severe economic downturn, a rapid increase in interest rates, and a spike in commodity prices. The stress testing model incorporates historical data and hypothetical scenarios to evaluate potential losses.

Given these circumstances, which of the following stress testing approaches would be most effective for XYZ Asset Management to ensure it captures the interdependencies among the different asset classes within its portfolio?