9 Large Caps Strongly Correlated With Volatility

|
Includes: ABX, AU, AUY, BVN, CF, CHL, ED, EGO, GFI
by: Kapitall

If you think that market volatility is going to persist in the near future, you may be very interested in this list.

We ran a screen on large-cap stocks for those with strongly positive correlations to VIX, the volatility index (or “fear gauge”), over the last three months.

The VIX index measures the implied volatility of S&P 500 index options, and it increases when market uncertainty takes over. If a stock has positive historical correlation with the VIX, it has tended to perform well when volatility and uncertainty spike. The market may be treating these stocks as “safe havens” during market crises.

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 market volatility will persist? Use this list as a starting-off point for your own analysis.

List sorted by correlation to VIX.

1. Yamana Gold, Inc. (NYSE:AUY): Engages in gold and other precious metals mining, and related activities, including exploration, extraction, processing, and reclamation. Market cap of $12.97B. Correlation to the VIX index at 0.80. Exhibiting strong upside momentum--currently trading 10.94% above its SMA20, 24.12% above its SMA50, and 38.14% above its SMA200. The stock has had a couple of great days, gaining 9.99% over the last week.

2. Gold Fields Ltd. (NYSE:GFI): Engages in the acquisition, exploration, development, and production of gold properties. Market cap of $12.03B. Correlation to the VIX index at 0.75. The stock has gained 15.42% over the last year.

3. Eldorado Gold Corp. (NYSE:EGO): Engages in the discovery, exploration, development, production, and reclamation of gold properties in Brazil, the People's Republic of China, Greece, and Turkey. Market cap of $11.97B. Correlation to the VIX index at 0.72. Exhibiting strong upside momentum--currently trading 10.54% above its SMA20, 20.22% above its SMA50, and 28.78% above its SMA200. The stock has had a couple of great days, gaining 9.77% over the last week.

4. Compania de Minas Buenaventura SA (NYSE:BVN): Engages in the exploration, mining, processing, and development of gold, silver, and other metals in Peru. Market cap of $12.01B. Correlation to the VIX index at 0.66. The stock has had a good month, gaining 14.12%.

5. Barrick Gold Corporation (NYSE:ABX): Engages in the production and sale of gold, as well as related activities, such as exploration and mine development. Market cap of $55.15B. Correlation to the VIX index at 0.65. Exhibiting strong upside momentum--currently trading 8.55% above its SMA20, 13.23% above its SMA50, and 12.31% above its SMA200. The stock has had a couple of great days, gaining 8.73% over the last week.

6. CF Industries Holdings, Inc. (NYSE:CF): Manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. Market cap of $13.28B. Correlation to the VIX index at 0.64. Exhibiting strong upside momentum--currently trading 5.93% above its SMA20, 15.6% above its SMA50, and 30.43% above its SMA200. The stock has had a good month, gaining 23.71%.

7. AngloGold Ashanti Ltd. (NYSE:AU): Engages in the exploration and production of gold. Market cap of $17.82B. Correlation to the VIX index at 0.58. The stock has gained 7.04% over the last year.

8. Consolidated Edison Inc. (NYSE:ED): Provides electric, gas, and steam utility services in the United States. Market cap of $16.42B. Correlation to the VIX index at 0.54. The stock has gained 22.46% over the last year.

9. China Mobile Limited (NYSE:CHL): Provides mobile telecommunications and related services primarily in the Mainland China. Market cap of $205.99B. Correlation to the VIX index at 0.54. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.97%, current ratio at 1.3, and quick ratio at 1.29. The stock has had a good month, gaining 13.24%.

*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.