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CIN Methodology

Cannabis Market Health Index (CMHI)

CIN's proprietary composite index that quantifies overall sector health from price momentum, analyst sentiment, capital market activity, and regulatory proximity.

Definition

The Cannabis Market Health Index (CMHI) is a proprietary composite scoring system developed by Cannabis Investor News to quantify the overall health of the cannabis equities sector on a 0–100 scale. CMHI combines four weighted inputs: (1) price momentum across the tracked 88-equity universe, (2) aggregate analyst sentiment shifts (upgrades, downgrades, target-price revisions), (3) capital market activity (equity raises, debt issuance, M&A volume), and (4) proximity to known regulatory catalysts. The index is recalculated three times daily alongside CIN's editorial briefings and publishes a current reading, a 30-day trend, and a directional bias signal.

Also known as: CMHI, Cannabis Health Index

Why It Matters for Investors

CMHI gives institutional readers a single, transparent number to track sector sentiment without parsing 88 individual tickers. A reading above 60 signals a healthy environment for capital deployment; below 30 signals stress. The index is rules-based — every component weighting and threshold is documented in CIN's methodology — so investors can reproduce or stress-test its construction.

Examples in Practice

  • A CMHI reading of 28.9 with a declining 30-day trend indicates a cautious risk environment.
  • CMHI spikes typically follow major regulatory catalysts (DEA rescheduling progress, SAFE Banking developments).

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