Heatshrink can be purchased in 2:1, 3:1, and 4:1 ratios. Buy something that will shrink to just slightly smaller size than the diameter of what you want to shrink.
For instance, if the cable to be covered is .375 diameter and you use 2:1 (shrinks to 1/2 size) heat shrink, you can use 1/2" or 5/8". If you use 3:1 (shrinks to 1/3 size), then 7/8" or 1" is the appropriate size.