Kensho: What if sleepy market has a nightmare?

NYSE Trader on the floor
Lucas Jackson | Reuters

A key volatility metric rallied sharply Monday after a period of decline. How can investors trade an impending volatility event using history as a guide?

The CBOE Volatility Index, or VIX, rose 8 percent Monday. It is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices, according to the CBOE. As of Friday the VIX traded at its lowest levels since mid-August 2015 before the market turmoil later that month.

VIX 1-year chart

Source: FactSet

CNBC Pro screened for which S&P 500 stocks and ETF securities will outperform if the VIX continues to rally over a month using hedge fund analytics tool Kensho.

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