9 Rallying Retail Stocks Positively Correlated To Volatility

Monday, June 18, 2012

9 Rallying Retail Stocks Positively Correlated To Volatility

By Kapitall: Do you worry about stock market volatility when choosing among companies? One idea is to consider their correlation with volatility. With this idea in mind, we ran a screen. We began by screening the retail industry for stocks that are rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

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.... Continue to read.

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Benjamin Graham Was A Crappy Hedge Fund Manager

Jack Bogle, the outspoken godfather of index funds and passive investing strategies, didn't approve of a recent Wall Street Journal article defending hedge funds.

In particular, he took issue with the author's reference to Benjamin Graham, the legendary Columbia finance professor who literally wrote the book on Security Analysis and mentored Warren Buffett.

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www.ritholtz.com

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