Volatility of Marijuana Stock Index during COVID-19 Pandemic
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Date
2022-11-11
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Publisher
UMT.Lahore
Abstract
This study examines the volatility of marijuana stocks index during COVID-19, using
Autoregressive Conditional Heteroscedasticity Model. The researcher examines the volatility of
marijuana stocks index during the said period and analyze whether the increased demand for
Marijuana and other related drugs has affected the variance of these firms’ stock and index returns.
The findings reveal that the COVID-19 has affected the index substantially, and returns show an
abnormal pattern and indicate the sensitivity and volatility of these firms to the news of verified
cases and causalities. Due to increased risk of pandemic’s unpredictability and economic loss,
market is more volatile. The findings also indicate that pandemic and volatility have long term
association. Therefore, firms need to be vigilant in understanding such risk factors, to respond to
them timely.