×
Kensho Stats

If the euro falls to parity with US dollar, hide out in these Dow stocks, history shows

Euro Dollar
Getty Images

If the euro continues its downtrend and falls to parity with the U.S. dollar in the next month, investors should hide out in three Dow Jones industrial average members that conduct a large part of their business domestically, history shows.

The euro is about 5 percent away from parity with the dollar. Using Kensho, CNBC PRO found EUR/USD declined 5 percent or more in one month a total of 18 times in the last decade.

Only three Dow members averaged a positive return during those occasions:



And as the table above shows, the Dow usually declines in a falling euro/strong dollar environment.

The fundamental data largely backs up this trading history. UnitedHealth and Home Depot generated 96 percent and 91 percent of their sales in the U.S., respectively, according to FactSet. McDonald's gets just over a third of its sales domestically.

Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.