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Perhaps health insurance stocks have gone up because the Dow has gone up at the same pace. Let's see [View All]

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mcablue Donating Member (625 posts) Send PM | Profile | Ignore Mon Dec-21-09 06:37 PM
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Perhaps health insurance stocks have gone up because the Dow has gone up at the same pace. Let's see
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Edited on Mon Dec-21-09 06:38 PM by mcablue
We shouldn't be simplistic and jump to conclusions that the latest health care news have caused a spike in health insurers' stocks. Perhaps the Dow Jones has gone up at a comparable rate in the last few days. There's only one way to know. Let's go to the statistics:



As you can see, the light blue line represent the Dow in general. That line is roughly flat during the past 10 days or so, when big events have rocked the health care reform news world, whereas health insurance stocks have experienced a surge.

How do health insurers' stocks compare to the Dow in general? Those lines represent United Health, Aetna, Humana and WellPoint.

What can we conclude regarding these numbers?

Here's the link to the graph: http://www.google.com/finance?q=INDEXDJX:.DJI

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