The stock market's so-called "fear index," the Cboe Volatility Index , is falling after jumping above 30 this week. If it keeps falling, some stocks could see their prices pop, according to a CNBC Pro analysis. As stocks rose on Thursday, attempting another comeback from this month's sell-off, the volatility index, also known as the VIX, turned back down. That was after almost a month of investors getting increasingly nervous amid this year's market tumult. The the VIX measures the market's expectation of volatility over the coming 30 days based on trading in S & P 500 options. It tends to rise or fall around events like rising interest rates, Covid cases and optimism about a ceasefire in the war in Ukraine. CNBC Pro searched for the five biggest monthly point drops in the VIX over the last three years, using data from FactSet, and found stocks that had the biggest average gains during those five months. We also looked for stocks that are down down at least 20% this year. Here are 10 that could see big short-term gains if the pattern holds. The analysis turned up several tech stocks, including EPAM Systems , F5 , Microchip Technology and Applied Materials . EPAM, whose stock price was rocked this year amid the turmoil in Ukraine, since most of its workforce is based there, is down about 60% for the year, although 66.7% of analysts have a buy rating on it. Moderna showed the biggest average move, of 29.7 points. The other health stock on the list, Quest Diagnostics , has an average move of 14.1 points. Resort and casino stocks Wynn and Caesars also made the list. They're down 20% and 31%, respectively, year-to-date. With uncertainty around mask mandates, the spread of Covid and border shutdowns, investors have continued to jump in and out of travel stocks this year. Signature Bank and D. R. Horton also made the list. To be sure, these risky stocks could make good short-term trades but could just as quickly reverse if fear returns to Wall Street.
Picture Alliance | Getty Images
The stock market's so-called "fear index," the Cboe Volatility Index, is falling after jumping above 30 this week. If it keeps falling, some stocks could see their prices pop, according to a CNBC Pro analysis.