Walmart, P&G are the Dow’s safest stocks when markets get wild

  • CNBC found that Walmart, Procter & Gamble and Coca-Cola fall less than 0.75 percent on average when the Cboe Volatility index pops more than 5 percent in one day.
  • Volatility has come back with a vengeance recently as worries of rising inflation sent interest rates higher, rattling investors.
Procter & Gamble's Tide
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Procter & Gamble's Tide

Volatility has come back with a vengeance, but there are some of the stocks that won't turn your stomach while the rest of Wall Street is on a roller coaster.

CNBC ran a study using analytics tool Kensho to find Dow Jones industrial average stocks that held up the best when the Cboe Volatility index, or VIX, pops more than 5 percent in one day. Theoretically, these likely would be the stocks that would hold up the best when the market sells off and volatility spikes.

The analysis showed that Walmart, Procter & Gamble and Coca-Cola fall less than 0.75 percent in those instances of VIX spike days.

Other stocks that hold up nicely during a volatility surge include Johnson & Johnson and McDonald's. Both stocks average a return of negative 0.77 percent when the VIX jumps more than 5 percent in one session.

Worries of rising inflation have sent interest rates higher recently, rattling investors and giving new life to stock-market volatility. Last week, the Dow, S&P 500 and Nasdaq composite dipped into correction territory. The 10-year note yield hit a four-year high earlier this week.

In the last week, the Dow has fallen about 1.8 percent. Meanwhile, Walmart, Procter & Gamble and Coca-Cola are down 1.3 percent, 1.4 percent and 1.6 percent, respectively, holding true to their past history of outperformance during these volatile times.

To be sure, past performance is not indicative of future returns and should never be the only reason to buy or sell a stock.

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