Six stocks in the S & P 500 rise often whenever Nvidia shares fall, according to a CNBC Pro analysis. The U.S.-listed stocks are Jack Daniel’s distiller Brown-Forman , gaming company Electronic Arts , health products maker Henry Schein , software outsourcing giant Cognizant , pet care firm Zoetis , and securities exchange Cboe . CNBC Pro screened for stocks in the S & P 500 that are inversely correlated to Nvidia’s over a month (March) and year (2023) period after the stock fell into correction territory for the second time this month. Technical analysts have suggested it may be time for investors to sell Nvidia too. Chart patterns indicate that deeper pullback may be due “just in time for the seasonal adage of ‘sell in May, and go away’ to manifest itself in investor behavior,” according to Katie Stockton of Fairlead Strategies. In the tables below, a negative 1 value in the correlation columns would mean that as Nvidia’s stock moves, either up or down, the share price of the companies listed below move in lockstep in the opposite direction. A correlation of 0 would indicate no statistical link between Nvidia’s stock and the share price of the six companies. CNBC Pro’s analysis used the Pearson correlation coefficient, the most common way of measuring a linear correlation between two variables — or stock prices. CNBC’s calculations only measure the direction and size of daily price action. Long-term returns are not considered. Correlated returns also do not indicate causation or guarantee future returns or price action patterns. The below table highlights the 10 stocks in the S & P 500 with the strongest inverse correlation with Nvidia’s share price. Trivariate Research’s Adam Parker also named eight steady growth stocks that could replace Nvidia if investors are concerned that they are overexposed to it.
