E Cannabis Central: American MSO Pot Stock Index Decline Accelerated Last Week

The 2 constituents that advanced marginally last week were Green Thumb and Columbia while Harvest Health, TerrAscend, Trulieve, Ayr Wellness, and Verano declined marginally.

Measuring Volatility

Beta measures the volatility (the up and down movement) of a stock relative to the overall stock market and serves as a measure of the volatility of a stock compared to others in the same sector. What you see below are the 7 most stable stocks in the munKNEE Pure-Play MSO Pot Stock Sub-Index and the 5 most volatile:

The Most Stable

  1. Ayr Wellness: 1.23x (i.e. historically its stock has moved only 23% more than the overall stock market); 2) cbdMD: 1.40x; 3) Medicine Man: 1.46x; 4) TerrAscend: 1.51x; 5) Columbia: 1.81x; 6) Curaleaf: 1.86x and 7) Trulieve: 1.96x

The Most Volatile

  1. Jushi: 8.34x (historically 8.34 times more volatile than the overall stock market); 2) Harvest Health: 4.02x; 3) C21 Investments: 3.99x; 4) Planet 13: 3.18x; 5) Harborside: 2.96x

The remaining 9 constituents in the munKNEE Pure-Play MSO Pot Stock Sub-Index have volatility that range, historically, between 2.16x and 2.66x that of the overall stock market.

The average beta of the above 22 stocks is 2.69x suggesting that if you’re going to invest in marijuana stocks - even the biggest and most famous names in the sector - you’ll need to brace for volatility.

For the sake of comparison, the average beta of the 9 constituents in the munKNEE Pure-Play LP Pot Stock Sub-Index currently is 2.11x as outlined in this TM article here. 

(For more information on the reason(s) behind the changes outlined below you are urged to click on the stock symbols provided by TalkMarkets, where additional information is provided. All currency amounts are in U.S. dollars. Go here to convert to another currency.)

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