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Will UnitedHealth Group (NYSE:UNH) volatility rise before February
 | By Raphi Shpitalnik | 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?
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Reviewed by Michael Smolkin
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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as UnitedHealth Group. Your research has to be compared to or analyzed against UnitedHealth Group's peers to derive any actionable benefits. When done correctly, UnitedHealth Group's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in UnitedHealth Group.
Investing in UnitedHealth Group, 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 Group 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, anticipate that the market will even out over time. This tendency of UnitedHealth Group's 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.
How important is UnitedHealth Group's Liquidity
UnitedHealth Group financial leverage refers to using borrowed capital as a funding source to finance UnitedHealth Group Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. UnitedHealth Group 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. Financial leverage can amplify the potential profits to UnitedHealth Group's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of UnitedHealth Group's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between UnitedHealth Group's total debt and its cash.
UnitedHealth Group Gross Profit
UnitedHealth Group Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing UnitedHealth Group previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show UnitedHealth Group Gross Profit growth over the last 10 years. Please check UnitedHealth Group's gross profit and other fundamental indicators for more details.
UnitedHealth Group 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 Incorporated. Diversification will allow for the same portfolio return with reduced risk. The correlation table of UnitedHealth Group 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
Breaking it down a bit more
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%.
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