Imagine a magical world where certain stocks rise gracefully when tech behemoth Nvidia takes a dip. LA News Center has uncovered six such gems within the mighty S&P 500 index.
- Brown-Forman: The mastermind behind the iconic Jack Daniel’s whiskey, this distiller has found solace amidst Nvidia’s struggles.
- Electronic Arts: Electronic Arts ushers players into virtual worlds, and their growth seems to thrive when Nvidia’s shares take a break.
- Henry Schein: This healthcare giant provides essential products and knows when to shine when semiconductors sit on the sidelines.
- Cognizant: A software outsourcing powerhouse, Cognizant’s brilliance is a counterpoint to Nvidia’s technology-driven realm.
- Zoetis: Caring for our furry friends, Zoetis brings joy to investors even as Nvidia’s fortunes fluctuate.
- Cboe: As the operator of the Chicago Board Options Exchange, Cboe adds a dash of excitement to the volatility cocktail.
Unraveling the Correlation
Our team delved into the numbers, crunching data over a month and a year, revealing a captivating correlation. When Nvidia’s stock takes a tumble, these six companies waltz in the opposite direction. The Pearson correlation coefficient, a mathematical dance of correlation measurement, guided our analysis.
But remember, correlation is not causation. These inverse correlations paint a pattern but don’t guarantee future riches.
Sell in May and Go Away?
Katie Stockton, the visionary analyst from Fairlead Strategies, suggests that it might be time to bid Nvidia farewell. The whispers of “sell in May, and go away” resonate with her analysis. Could the resilience of these correlated stocks provide a softer landing for those exiting Nvidia’s volatile embrace?
To round it off, we present the league table of S&P 500 stocks that have a strong inverse correlation with Nvidia, as well as eight steady growth stocks recommended by Adam Parker of Trivariate Research to help you navigate away from Nvidia if you wish.
- Brown-Forman
- Electronic Arts
- Henry Schein
- Cognizant
- Zoetis
- Cboe
- Chevron Corp. (CVX)
- Exxon Mobil Corp. (XOM)
- Coca-Cola Co. (KO)
- PepsiCo Inc. (PEP)
As always, remember to dance with wisdom in the stock market, seeking guidance from trusted sources and diversifying your moves to the rhythm of correlation.
Data sourced from: cnbc.com
