8 Highly Liquid Stocks Under $5 Positively Correlated To Volatility

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Includes: AKG, ATAI, GAGA, LSCC, RIC, SONS, SSN, XRA
by: Kapitall

Do you value companies with strong liquidity? We ran a screen with this idea in mind.

We began by screening for stocks trading under $5 a share for those with strong liquidity, with current ratios above 3.

We then screened for those with strong positive correlations to the volatility (VIX) index over the last two months. This indicates that these stocks have tended to outperform when market uncertainty and volatility spiked. This may bode well if the market sees more volatility in the future. Of course, past performance is no guarantee of future returns.

For an ‪interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.‬

Tool provided by Kapitall (www.kapitall.com). More investing ideas on Kapitall Wire (wire.kapitall.com).

Do you think these stocks are poised to move higher? Use this list as a starting point for your own analysis.

List sorted by correlation to VIX.

1. Samson Oil & Gas Limited (NYSEMKT:SSN): Engages in the exploration, development, and production of oil and gas properties in the United States. Market cap at $102.6M, most recent closing price at $1.15. Current ratio at 3.44. Correlation with the VIX index at 0.687 over the last 60 days.

2. Richmont Mines Inc. (NYSEMKT:RIC): Engages in the acquisition, exploration, development, and operation of mining properties, principally gold in northeast Canada. Market cap at $125.96M, most recent closing price at $3.75. Current ratio at 3.54. Correlation with the VIX index at 0.644 over the last 60 days.

3. Le Gaga Holdings Ltd (NASDAQ:GAGA): Engages in cultivating, processing, and distributing vegetables. Market cap at $182.52M, most recent closing price at $4.0. Current ratio at 12.48. Correlation with the VIX index at 0.629 over the last 60 days.

4. ATA, Inc. (NASDAQ:ATAI): Provides computer-based testing services in the People's Republic of China. Market cap at $104.33M, most recent closing price at $4.54. Current ratio at 3.9. Correlation with the VIX index at 0.553 over the last 60 days.

5. Lattice Semiconductor Corporation (NASDAQ:LSCC): Designs, develops, manufactures, and markets programmable logic products and related software. Market cap at $454.14M, most recent closing price at $3.87. Current ratio at 5.81. Correlation with the VIX index at 0.55 over the last 60 days.

6. Sonus Networks, Inc. (NASDAQ:SONS): Provides voice and data infrastructure solutions for wireline and wireless telephone service providers. Market cap at $498.38M, most recent closing price at $1.78. Current ratio at 6.02. Correlation with the VIX index at 0.535 over the last 60 days.

7. Exeter Resource Corporation (NYSEMKT:XRA): Engages in the acquisition, exploration, and development of gold deposits in the Maricunga district in Chile. Market cap at $137.83M, most recent closing price at $1.56. Current ratio at 32.5. Correlation with the VIX index at 0.521 over the last 60 days.

8. Keegan Resources Inc. (KGN): Engages in the acquisition and exploration of gold deposits in West Africa. Market cap at $249.31M, most recent closing price at $3.30. Current ratio at 41.24. Correlation with the VIX index at 0.502 over the last 60 days.

*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.