Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you worry that the market will see significant volatility in the near future? One idea is to consider a stock's historical correlation to volatility - stocks that are positively correlated may have been treated as safe havens.

To illustrate this, we ran a screen on the biotech industry to find those stocks with the most significantly positive correlations to the volatility VIX index over the last two months. This means that these stocks have tended to go up during times of volatility and uncertainty over the last two months.

However, keep in mind that past performance does not guarantee future retunes.

Interactive Chart: Press Play to compare changes in market cap 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 the market will see more volatility going forward? Use this list as a starting point for your own analysis.

1. Amyris Biotechnologies Inc. (NASDAQ:AMRS): Offers renewable compounds for a variety of markets. Correlation with the VIX index at 0.672 over the last 60 days.

2. AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO): Engages in the discovery and development of cancer therapeutics. Correlation with the VIX index at 0.745 over the last 60 days.

3. China Biologic Products, Inc. (NASDAQ:CBPO): Engages in the research, development, manufacturing, and sale of plasma-based pharmaceutical products. Correlation with the VIX index at 0.622 over the last 60 days.

4. Chelsea Therapeutics International Ltd. (NASDAQ:CHTP): Focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of various human diseases. Correlation with the VIX index at 0.679 over the last 60 days.

5. Pluristem Therapeutics, Inc. (NASDAQ:PSTI): Engages in the research, development, and production of placental-derived adherent stromal cells. Correlation with the VIX index at 0.576 over the last 60 days.

6. Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. Correlation with the VIX index at 0.635 over the last 60 days.

7. Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI): A commercial-stage biotechnology company, primarily focuses on oncology and hematology. Correlation with the VIX index at 0.502 over the last 60 days.

8. Theravance Inc. (NASDAQ:THRX): Engages in the discovery, development, and commercialization of small molecule medicines for various therapeutic areas, including respiratory disease, bacterial infections, and central nervous system/pain. Correlation with the VIX index at 0.589 over the last 60 days.

9. Vical Inc. (NASDAQ:VICL): Engages in the research and development of biopharmaceutical products based on its deoxyribonucleic acid delivery technologies for the prevention and treatment of serious or life-threatening diseases. Correlation with the VIX index at 0.759 over the last 60 days.

10. Zalicus Inc. (ZLCS): Engages in the discovery and development of drug candidates focusing on the treatment of pain and inflammation. Correlation with the VIX index at 0.617 over the last 60 days.

*Price data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 10 Biotech Stocks Positively Correlated To Volatility