Do you worry about volatility when choosing among stocks? One idea is to consider a stock's recent trading volatility.

We ran a screen with this idea in mind, beginning with stocks of the S&P 500 that are rallying above their 20-day, 50-day, and 200-day moving averages. We screened these stocks with upward momentum for those with low volatility over the last month, with average intra-day trading volatility under 2% for the last month (meaning on average, these stocks have traded within 2% ranges each day over the last month).

We then screened for those that also appear undervalued relative to the Graham Number. The Graham Number is a measure of maximum fair value created by the "godfather of value investing" Benjamin Graham.

It is based off of a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

*Interactive Chart: Press Play to compare changes in market cap over the last two years for up to six of 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 these stocks offer less risk? Use this list as a starting point for your own analysis.

List sorted by average intra-day volatility over the last month.

** 1. Pepco Holdings, Inc. (NYSE:POM):** Engages in the transmission, distribution, and supply of electricity. Market cap at $4.31B, most recent closing price at $18.90. Average intra-day volatility over the last month at 1.20%. The stock is currently rallying 1.59% above its 20-day moving average, 0.21% above its 50-day MA, and 0.47% above its 200-day MA. Diluted TTM earnings per share at 1.15, and a MRQ book value per share value at 19.13, implies a Graham Number fair value = sqrt(22.5*1.15*19.13) = $22.25. Based on the stock's price at $18.89, this implies a potential upside of 17.78% from current levels.

** 2. Loews Corporation (NYSE:L):** Operates primarily as a commercial property and casualty insurance company in the United States. Market cap at $16.16B, most recent closing price at $40.53. Average intra-day volatility over the last month at 1.27%. The stock is currently rallying 0.75% above its 20-day moving average, 2.09% above its 50-day MA, and 6.49% above its 200-day MA. Diluted TTM earnings per share at 2.62, and a MRQ book value per share value at 47.49, implies a Graham Number fair value = sqrt(22.5*2.62*47.49) = $52.91. Based on the stock's price at $40.77, this implies a potential upside of 29.78% from current levels.

** 3. The Chubb Corporation (NYSE:CB):** Provides property and casualty insurance to businesses and individuals. Market cap at $20.09B, most recent closing price at $73.83. Average intra-day volatility over the last month at 1.31%. The stock is currently rallying 2.19% above its 20-day moving average, 5.34% above its 50-day MA, and 12.18% above its 200-day MA. Diluted TTM earnings per share at 5.86, and a MRQ book value per share value at 57.16, implies a Graham Number fair value = sqrt(22.5*5.86*57.16) = $86.81. Based on the stock's price at $73.39, this implies a potential upside of 18.29% from current levels.

** 4. CenterPoint Energy, Inc. (NYSE:CNP):** Operates as a public utility holding company in the United States. Market cap at $8.5B, most recent closing price at $19.80. Average intra-day volatility over the last month at 1.61%. The stock is currently rallying 1.25% above its 20-day moving average, 2.17% above its 50-day MA, and 3.24% above its 200-day MA. Diluted TTM earnings per share at 3.16, and a MRQ book value per share value at 10.03, implies a Graham Number fair value = sqrt(22.5*3.16*10.03) = $26.70. Based on the stock's price at $20.05, this implies a potential upside of 33.19% from current levels.

** 5. PNC Financial Services Group Inc. (NYSE:PNC):** Operates as a diversified financial services company. Market cap at $34.87B, most recent closing price at $65.94. Average intra-day volatility over the last month at 1.65%. The stock is currently rallying 1.05% above its 20-day moving average, 4.26% above its 50-day MA, and 18.37% above its 200-day MA. Diluted TTM earnings per share at 5.51, and a MRQ book value per share value at 63.27, implies a Graham Number fair value = sqrt(22.5*5.51*63.27) = $88.57. Based on the stock's price at $65.26, this implies a potential upside of 35.71% from current levels.

** 6. The Allstate Corporation (NYSE:ALL):** Engages in the personal property and casualty insurance, life insurance, retirement, and investment products businesses primarily in the United States. Market cap at $16.83B, most recent closing price at $34.21. Average intra-day volatility over the last month at 1.67%. The stock is currently rallying 3.67% above its 20-day moving average, 5.28% above its 50-day MA, and 22.66% above its 200-day MA. Diluted TTM earnings per share at 2.01, and a MRQ book value per share value at 38.91, implies a Graham Number fair value = sqrt(22.5*2.01*38.91) = $41.95. Based on the stock's price at $34.2, this implies a potential upside of 22.66% from current levels.

*BVPS and EPS 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.