Abstract
The present paper analyses the association among the fluctuations in global crude oil prices and the Dow Jones Islamic Stock Index by employing daily data from 1st January 1996 to 13th April 2018. The paper uses a novel approach of Wavelet-based Quantile-on-Quantile Regression Model to examine the influence of different quantiles of the decomposed time series of WTI Brent Crude Oil Prices on quantiles of Islamic stock index. The outcome of the study indicates the heterogeneity in the influence of global crude oil prices on Islamic Stock Index. The original time series data exerts the positive influence across all the quantiles. When we decompose the series, we find the positive influence starts decreasing and with the advent of stability in the time series of global crude oil prices, the negative effect becomes stronger. The analysis of the present study indicates that oil prices fluctuations may have a positive effect on Islamic stock index in short run, but on attaining stability, the oil prices exert a negative influence on the Islamic stock index.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
