HealthStream Stock Volatility

HSTM Stock  USD 20.59  -0.38  -1.81%   
HealthStream retains a minimal volatility profile during the current observation window. At this stage, HealthStream shows a Sharpe Ratio (Efficiency) of -0.14, showing that returns did not compensate for risk over the last 3 months. We detected 24 technical indicators affecting the current volatility setup.

Sharpe Ratio = -0.1381

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CashSmall RiskAverage RiskHigh RiskHuge Risk
Negative ReturnsHSTM
HealthStream's financial profile includes a Market Risk Adjusted Performance of -0.8%, a Risk of 1.75, and a Risk Adjusted Performance of -0.1%. HealthStream is not utilizing its full return potential based on monthly moving average. A well-constructed well-diversified portfolio can reduce volatility and improve total return.
Key indicators related to HealthStream's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Short-term traders focus on HealthStream's daily volatility and intraday price ranges, while long-term investors are more concerned with HealthStream's annual return volatility and its impact on compound wealth accumulation over time.

Volatility Strategy

HealthStream price cycles can influence portfolio-level exposure concentration. Current statistical measures show total volatility near 1.75% with a beta coefficient of 0.24, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.14, evaluates return per unit of total risk. An alpha value of -0.18 reflects performance relative to systematic market exposure. Expected return estimates near -0.24% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Revenue outlook adjustments can impact price movement.

Main indicators related to HealthStream's market risk premium analysis include:

 Beta
0.24
 Alpha
-0.18
 Risk
1.75
 Sharpe Ratio
-0.14
 Expected Return
-0.24

Moving together with HealthStream Stock

  0.76PHR PhreesiaPairCorr
  0.65SLP Simulations PlusPairCorr
  0.73GDRX Goodrx HoldingsPairCorr
  0.69M7T MACH7 TechnologiesPairCorr
  0.64OMDA Omada Health CommonPairCorr
  0.8SDGR SchrodingerPairCorr
  0.85TDOC TeladocPairCorr

Moving against HealthStream Stock

  0.8EC Ecopetrol SA ADRPairCorr
  0.69ALMDT MediantechnPairCorr
  0.69CHS Comprehensive HealthcarePairCorr

Sensitivity To Market

With a beta of 0.24, HealthStream shows measurable correlation with market returns. Beta is statistically defined as the regression slope between asset and benchmark returns. Current volatility is near 1.75%.HealthStream return variability over the selected time horizon is summarized by standard deviation (1.73%) and semi-deviation (0.0%). Options markets imply a forward-looking volatility estimate near 192.0%. This suggests the market is pricing in the possibility of wider future price swings compared to recent historical dispersion. Stock dispersion can change materially during earnings seasons and macro data releases.
Check current 90 days HealthStream correlation with market (Dow Jones Industrial)
α-0.1827   β0.24
3 Months Beta |Analyze HealthStream Demand Trend
Check current 90 days HealthStream correlation with market (Dow Jones Industrial)

Downside Risk

The standard deviation of HealthStream measures the day-to-day variability of its price relative to the historical mean. A high standard deviation indicates a volatile instrument; a low one indicates stability.
Standard Deviation
    
  1.75  
Upside risk in HealthStream is represented by standard deviation, which includes all price movements. Downside risk is better captured by downside deviation or semi-deviation of HealthStream's daily returns. HealthStream's financial profile includes a Maximum Drawdown of 8.90.

Using HealthStream Put Option to Manage Risk Based on 2026-04-17 Contracts

HealthStream's financial profile includes an Option Implied Volatility of 1.92 and an Option Max Pain Price of -1. Hedging a HealthStream position using put options allows investors to cap their maximum loss. The put buyer on HealthStream Stock has the contractual right to sell HealthStream at the strike price before expiry.

HealthStream's PUT expiring on 2026-06-18

   Profit   
       HealthStream Price At Expiration  

Stock Volatility Analysis

Price volatility in HealthStream measures the variation in HealthStream's stock price over time. High volatility means greater uncertainty about HealthStream's short-term price direction. Low volatility means the stock is more likely to trade within a narrow range.
Transformation
This analysis covers sixty-one data points across the selected time horizon. HealthStream Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Projected Return Density Against Market

Given the investment horizon of 90 days HealthStream has a beta of 0.239 . This usually indicates as returns on the market go up, HealthStream's average returns are expected to increase less than the benchmark. However, during a bear market, the loss from holding HealthStream is expected to be smaller as well.
Systematic exposure aligns HealthStream with overall stock market volatility, while unsystematic drivers reflect company or sector-specific developments. HealthStream's financial profile includes a Mean Deviation of 1.31, an Option Implied Volatility of 1.92, and a Standard Deviation of 1.73.
HealthStream has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial.
   Predicted Return Density   
       Returns  
HealthStream's volatility is measured either by using standard deviation or beta. Standard deviation reflects how much HealthStream's price typically deviates from the mean over a given period.

What Drives HealthStream's Price Volatility?

Several factors can influence HealthStream's market volatility:

Industry Dynamics

Sector-level events can directly affect HealthStream's price stability. Regulatory changes, supply disruptions, or shifts in demand within HealthStream's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like HealthStream.

Political and Economic Environment

Macroeconomic conditions and policy decisions shape the backdrop for HealthStream's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward HealthStream. During periods of economic expansion, HealthStream's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.

HealthStream's Company-Specific Factors

Volatility can also stem from events unique to HealthStream. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in HealthStream's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on HealthStream's share price.

Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of HealthStream is -723.96. The daily returns are distributed with a variance of 3.08 and standard deviation of 1.75. The mean deviation of HealthStream is currently at 1.31. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α
Alpha over Dow Jones
-0.1827
β
Beta against Dow Jones0.24
σ
Overall volatility
1.75
Ir
Information ratio -0.0874

Stock Return Volatility

Daily return volatility for HealthStream measures how far stock returns deviate from their average on a day-to-day basis. The firm shows 1.7547% volatility of returns over 90 trading days. For comparison, Dow Jones Industrial has volatility of 0.8012% on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

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REPLNUTX
  

High negative correlations

REPLAMN
DAWNTBPH
DAWNNUTX
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Risk-Adjusted Indicators

Strong stock returns do not always mean HealthStream Company is outperforming its peers on a fundamental level. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze HealthStream's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Risk Metrics, Assumptions & Methodology

Volatility for HealthStream measures return dispersion and uncertainty over time. Dispersion metrics refine allocation models across asset classes. HealthStream has a market cap of 622.14 M, P/E of 87.15, ROE of 5.14%.

Unless otherwise specified, data for HealthStream is compiled from periodic company reporting and market reference feeds and standardized for comparability. Analyst projections are included when active coverage applies. Updates may occur throughout the day. Volatility and downside metrics are estimated from historical return dispersion.

This content is curated and reviewed by:

Raphi Shpitalnik - Junior Member of Macroaxis Editorial Board
Last reviewed on March 1st, 2026

HealthStream Investment Opportunity

HealthStream is about 2.19 times more volatile than Dow Jones Industrial based on recent return behavior. Used properly, this comparison helps investors decide whether the extra volatility is strategic or simply uncompensated risk.You can use HealthStream to protect your portfolios against small market fluctuations. This move summary looks at how the current session may translate into a basic near-term setup. It is intended to separate routine noise from more speculative bursts in price action. a somewhat bearish sentiment, but the market may correct it shortly. Check odds of HealthStream to be traded at $19.97 in 90 days.
Very good diversification
Across the chosen horizon, HSTM and DJI show a correlation of -0.3 and fall into the Very good diversification bucket. This matters because lower overlap can improve diversification, while higher overlap leaves more of the same risk inside the portfolio.

HealthStream Additional Risk Indicators

Risk analysis around HealthStream becomes more useful when investors review secondary indicators that can confirm, refine, or challenge the basic volatility picture. This is most useful when investors want to understand whether the current opportunity is being paid for with reasonable risk.

HealthStream Suggested Diversification Pairs

Using HealthStream in a pair-trading setup can improve risk control because gains and losses are judged against a second position instead of against the market alone. The key question is whether the second leg adds real hedge value instead of just creating a more complex version of the same risk.
Pair diversification lowers overall risk, though certain risk categories remain unaffected regardless of how positions are paired. Systematic risk - the risk tied to the overall market - cannot be eliminated by pairing HealthStream with another position. However, HealthStream's company-specific risk can be partially offset by selecting a pair that does not move in lockstep with HealthStream.

More Resources for HealthStream Stock Analysis

Reviewing HealthStream commonly begins with financial statements and performance trends. Ratio analysis helps investors evaluate HealthStream Stock operating efficiency and financial trajectory. Highlighted below are reports that provide context for HealthStream Stock: