Unitedhealth Story

UNH -- USA Stock

USD 332.20 3.33 1.01%

Macroaxis Story

It seems as UnitedHealth Group may not recover as fast as we have hopped for as its price went down 0.25% today. UnitedHealth Group current daily volatility is 1.9 percent, with a beta of 1.03 and an alpha of 0.02 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to concentrate on UnitedHealth Group Incorporated based on its technical indicators. What exactly are UnitedHealth Group shareholders getting in February?

Published over a month ago

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Will UnitedHealth Group (NYSE:UNH) volatility rise before February

UnitedHealth Group Incorporated has roughly 20.81 B in cash with 22.28 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 21.93. UnitedHealth Group has performance score of 5 on a scale of 0 to 100. The entity has a beta of 1.0251, which indicates a somewhat significant risk relative to the market. Let's try to break down what UnitedHealth's beta means in this case. UnitedHealth Group returns are very sensitive to returns on the market. As the market goes up or down, UnitedHealth Group is expected to follow. Although it is extremely important to respect UnitedHealth Group current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting UnitedHealth Group technical indicators, you can presently evaluate if the expected return of 0.15% will be sustainable into the future. UnitedHealth Group right now has a risk of 1.9%. Please validate UnitedHealth Group coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if UnitedHealth Group will be following its existing price patterns.

Investing in Unitedhealth, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Unitedhealth along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Unitedhealth's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Unitedhealth in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as Unitedhealth. Your research has to be compared to or analyzed against Unitedhealth's peers to derive any actionable benefits. When done correctly, Unitedhealth's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Unitedhealth Group.

How important is Unitedhealth's Liquidity

Unitedhealth financial leverage refers to using borrowed capital as a funding source to finance Unitedhealth Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Unitedhealth financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Unitedhealth's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Unitedhealth, but it might be worth checking our own buy vs. sell analysis

Unitedhealth Correlation with Peers

Investors in Unitedhealth can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Unitedhealth Group. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Unitedhealth and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Unitedhealth is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.

Please check volatility of Unitedhealth for more details

Acquisition by Lewis Patricia L of 13390 shares of Unitedhealth subject to Rule 16b-3

Legal trades by Unitedhealth insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Unitedhealth insider trading alert for grant of non-qualified stock option (right to buy) by Lewis Patricia L, EVP and Chief HR Officer, on 24th of February 2021. This event was filed by Unitedhealth Group Inc with SEC on 2021-02-24. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Unitedhealth Investor Appetite?

We consider UnitedHealth Group very steady. UnitedHealth Group owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0777, which indicates the firm had 0.0777% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for UnitedHealth Group Incorporated, which you can use to evaluate future volatility of the company. Please validate UnitedHealth Group Coefficient Of Variation of 1203.05, semi deviation of 1.18, and Risk Adjusted Performance of 0.0878 to confirm if the risk estimate we provide is consistent with the expected return of 0.15%.

	SEM	THC	UHS	UNH	UUUU
SEM		0.94	0.84	0.72	0.9	SEM
THC	0.94		0.8	0.61	0.92	THC
UHS	0.84	0.8		0.72	0.73	UHS
UNH	0.72	0.61	0.72		0.51	UNH
UUUU	0.9	0.92	0.73	0.51		UUUU
	SEM	THC	UHS	UNH	UUUU

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

UnitedHealth Group has 88 percent chance to finish below $358 next week

Current expected short fall indicator falls down to -1.4. Possible price rise? UnitedHealth Group Incorporated has relatively low volatility with skewness of 2.64 and kurtosis of 13.99. However, we advise all investors to independently investigate UnitedHealth Group Incorporated to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Bottom Line

While some companies in the healthcare plans industry are either recovering or due for a correction, UnitedHealth may not be as strong as the others in terms of longer-term growth potentials. While some stockholders may not share our view we believe it may be a good time to exit UnitedHealth as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to UnitedHealth Group.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Unitedhealth Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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Unitedhealth Story

USD 332.20 3.33 1.01%

How important is Unitedhealth's Liquidity

What do experts say?

Unitedhealth Correlation with Peers

Acquisition by Lewis Patricia L of 13390 shares of Unitedhealth subject to Rule 16b-3

What is driving Unitedhealth Investor Appetite?

UnitedHealth Group has 88 percent chance to finish below $358 next week

The Bottom Line

About Contributor

Would you like to provide feedback on the content of this article?

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