According to analysis by CNBC Pro, every time Nvidia shares fall, six stocks in the S&P 500 rise. Stocks listed in the United States include Jack Daniel’s brewer Brown-Forman, gaming company Electronic Arts, health care product manufacturer Henry Schein, software outsourcing giant Cognizant, pet care company Zoetis and stock exchange Cboe. CNBC Pro screened the S&P 500 stocks for negative correlation with Nvidia over one-month (March) and one-year (2023) periods, after the stock fell into correction territory for the second time this month. Technology analysts say it may also be time for investors to sell Nvidia. Fairlead Strategies’ Katie Stockton said chart patterns suggest a deeper retracement may be due to “coinciding with the seasonal motto of ‘sell in May and walk away’ being reflected in investor behavior.” In the table below, a negative value of 1 in the relevant column means that as Nvidia stock rises or falls, the stock prices of the companies listed below move in the opposite direction in tandem. A correlation of 0 means there is no statistical correlation between Nvidia’s stock and the stock prices of these six companies. CNBC Pro’s analysis uses the Pearson correlation coefficient, the most common way to measure the linear correlation between two variables (or stock prices). CNBC’s calculations only measure the direction and magnitude of daily price movements. No consideration is given to long-term returns. Correlated returns also do not indicate causation or guarantee future returns or price action patterns. The table below highlights the 10 stocks in the S&P 500 that have the strongest negative correlation with Nvidia’s stock price. Trivariate Research’s Adam Parker also listed eight solid growth stocks that could replace Nvidia if investors worry they’ve overinvested in the company.
