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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 stocks priced under $4 for those that are highly correlated to VIX over the last three months.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six 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:



Do you think these stocks will perform well during market uncertainty? Use this list as a starting-off point for your own analysis.

List sorted by correlation to VIX index.

1. Allied Healthcare International Inc. (AHCI): Home Health Care Industry. Market cap of $163.39M. Price at $3.77. Correlation to the VIX index at 0.67. Exhibiting strong upside momentum--currently trading 27.93% above its SMA20, 42.74% above its SMA50, and 45.71% above its SMA200. The stock has had a good month, gaining 52.44%.

2. RTI Biologics, Inc. (RTIX): Medical Appliances & Equipment Industry. Market cap of $174.31M. Price at $3.20. Correlation to the VIX index at 0.47. It's been a rough couple of days for the stock, losing 5.11% over the last week.

3. Gold Reserve Inc. (GRZ): Gold Industry. Market cap of $137.40M. Price at $2.23. Correlation to the VIX index at 0.35. After a solid performance over the last year, GRZ has pulled back during recent sessions. The stock is 7.86% below its SMA20 and 5.47% below its SMA50, but remains 18.85% above its SMA200. The stock has gained 145.74% over the last year.

4. Midway Gold Corp. (MDW): Gold Industry. Market cap of $228.82M. Price at $2.20. Correlation to the VIX index at 0.35. It's been a rough couple of days for the stock, losing 18.65% over the last week.

5. Adolor Corp. (ADLR):
Drug Manufacturers Industry. Market cap of $101.28M. Price at $2.25. Correlation to the VIX index at 0.33. It's been a rough couple of days for the stock, losing 15.83% over the last week.

6. Gastar Exploration, Ltd. (GST):
Oil & Gas Drilling & Exploration Industry. Market cap of $237.39M. Price at $3.83. Correlation to the VIX index at 0.33. The stock is a short squeeze candidate, with a short float at 5.45% (equivalent to 5.37 days of average volume). It's been a rough couple of days for the stock, losing 21.29% over the last week.

7. Northgate Minerals Corp. (NXG):
Gold Industry. Market cap of $890.48M. Price at $3.08. Correlation to the VIX index at 0.31. It's been a rough couple of days for the stock, losing 8.96% over the last week. The stock has had a good month, gaining 10.51%.

8. China Cord Blood Corporation (CO): Medical Laboratories & Research Industry. Market cap of $256.39M. Price at $3.50. Correlation to the VIX index at 0.29. The stock has lost 31.45% over the last year.

9. Banro Corporation (BAA):
Gold Industry. Market cap of $729.47M. Price at $3.83. Correlation to the VIX index at 0.24. It's been a rough couple of days for the stock, losing 13.38% over the last week.

*Price data sourced from Yahoo! Finance, 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: 9 Stocks Under $4 Correlated to Market Volatility