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The VIX index, also known as the “fear gauge,” measures the implied volatility of S&P 500 index options, and it increases when market uncertainty takes over. If a stock has a high historical correlation with the VIX, it has tended to perform well during times of volatility and uncertainty.

But of course, past performance is no guarantee of future results.

We ran a screen on companies with high cash flow growth, comparing trailing-twelve-month operating cash flow/common equity to the five-year average. We screened these companies for those that have had a high historical correlation with the VIX over the last three months.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.



We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Click to enlarge


Do you think these stocks would weather a stock market storm? Use this list as a starting point for your own analysis.

List sorted by correlation to the VIX index.

1. Terra Nitrogen Company, L.P. (NYSE:TNH): Agricultural Chemicals Industry. Market cap of $2.80B. TTM operating cash flow/common equity at 1.55 vs. five-year average at 1.29. Correlation to the VIX index at 0.54. The stock has gained 79.33% over the last year.

2. ITT Educational Services Inc. (NYSE:ESI): Education and Training Services Industry. Market cap of $2.18B. TTM operating cash flow/common equity at 4.63 vs. five-year average at 1.90. Correlation to the VIX index at 0.33. The stock is a short squeeze candidate, with a short float at 29.12% (equivalent to 8.48 days of average volume). After a solid performance over the last year, ESI has pulled back during recent sessions. The stock is 8.97% below its SMA20 and 2.51% below its SMA50, but remains 13.44% above its SMA200. The stock has gained 7.12% over the last year.

3. Permian Basin Royalty Trust (NYSE:PBT): Diversified Investments Industry. Market cap of $995.12M. TTM operating cash flow/common equity at 64.29 vs. five-year average at 55.14. Correlation to the VIX index at 0.29. The stock has gained 17.5% over the last year.

4. Ocwen Financial Corp. (NYSE:OCN): Savings and Loans Industry. Market cap of $1.27B. TTM operating cash flow/common equity at 0.96 vs. five-year average at 0.29. Correlation to the VIX index at 0.28. The stock is a short squeeze candidate, with a short float at 7.97% (equivalent to 8.15 days of average volume). The stock has gained 27.4% over the last year.

5. Akorn, Inc. (NASDAQ:AKRX): Drugs Industry. Market cap of $687.38M. TTM operating cash flow/common equity at 0.20 vs. five-year average at -0.06. Correlation to the VIX index at 0.27. The stock is a short squeeze candidate, with a short float at 7.41% (equivalent to 5.51 days of average volume). The stock has had a couple of great days, gaining 5.21% over the last week.

*Price data sourced from Yahoo! Finance, operating cash flow/common equity sourced from Screener.co, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 5 High Cash-Flow Growth Stocks Correlated With Market Volatility