Are you concerned about stock market volatility? One idea is to consider the correlation of certain stocks to volatility, such that those with high correlations have tended to perform well when investors become uncertain and volatility rises.
We ran a screen with this in mind, beginning with the semiconductor industry of the tech sector for those stocks with high historical correlations to the volatility index VIX over the last two months.
Of course past performance does not guarantee future returns.
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.
Do you think volatility will make its way back into the stock market? Use this list as a starting point for your own analysis.
1. Spreadtrum Communications Inc. (SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Technology Correlation with the VIX index at 0.798 over the last 60 days.
2. Parkervision Inc. (PRKR): Engages in the design, development, and sale of proprietary radio frequency technologies and products for use in semiconductor circuits for wireless communication products. Technology Correlation with the VIX index at 0.693 over the last 60 days.
3. RF Micro Devices Inc. (RFMD): Designs, develops, manufactures, and markets radio frequency components and compound semiconductor technologies in the United States and internationally. Technology Correlation with the VIX index at 0.612 over the last 60 days.
4. Actions Semiconductor Co., Ltd. (ACTS): Operates as a semiconductor company in the People's Republic of China. Technology Correlation with the VIX index at 0.541 over the last 60 days.
5. Sigma Designs, Inc. (SIGM): Provides integrated system-on-chip solutions for the Internet protocol television, media processor, connected home and media player, prosumer and industrial audio/video, high definition television, and PC-based add-in markets. Technology Correlation with the VIX index at 0.533 over the last 60 days.
*Price data sourced from Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.