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Volatility on the rise? 3 S&P 500 stocks with positive VIX correlations

By James Dennin for Kapitall.

The S&P 500 has gone without a 10% loss for 33 consecutive months, its longest "win streak" in more than 10 years. That's enough of a streak to start prompting concerns.

In a new poll of financial professionals conducted by  Bloomberg, almost half of the respondents feared that we were entering a bubble or were already in one. Nearly all of them expect stock swings to increase in the next week. 

That contrasts with what Federal Reserve Chair Janet Yellen said in this week's Fed minutes. Yellen stated that while valuations were stretched in some smaller biotechnology and internet firms, prices were in line with historical levels. 

Given the possibility that price swings are indeed on the rise, we decided to screen for stocks that like heightened volatility. To do that we looked for stocks that correlate with the VIX index. 

VIX is the ticker for the Chicago Board Options Exchange Market Volatility Index—an index that uses options price fluctuations to gauge implied volatility in the S&P 500. We screened the entire S&P 500 for stocks with a positive VIX correlation over the last 60 days

This left us with three stocks on our list. 

Click on the interactive chart to view data over time. 

 

1. Cliffs Natural Resources Inc. ( CLF): Produces iron ore pellets, lump and fines iron ore, and metallurgical coal products. Market cap at $2.41B, most recent closing price at $15.72.  

Correlation with the VIX index at 0.754 over the last 60 days.

 

2. Coach, Inc. ( COH): Engages in the design and marketing of accessories and gifts for men and women in the United States and internationally. Market cap at $9.41B, most recent closing price at $33.79.  

Correlation with the VIX index at 0.784 over the last 60 days.  

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