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Relationship Between Bitcoin and Islamic Stock Indices During the COVID-19 Pandemic and the Russia-Ukraine Crisis

Author

Listed:
  • Hashim JUSOH
  • AbdelKader Ouatik EL ALAOUI
  • Amina DCHIECHE
  • Ahmad Faizol ISMAIL
  • Rosalan ALI

    (Research Institute for Islamic Products and Malay Civilization (INSPIRE))

Abstract

We analyze the relationship between Bitcoin and major regional Islamic stock indices during two major events: COVID-19 and the Russia-Ukraine war. The multi-horizon analysis provide evidence of low correlation between Bitcoin’s inter-temporal returns and Islamic indices returns during periods before extreme events. However, there is limited potential for diversification in the long run as their correlations increase significantly. During shocks, Bitcoin cannot be a safe haven for Islamic markets.

Suggested Citation

  • Hashim JUSOH & AbdelKader Ouatik EL ALAOUI & Amina DCHIECHE & Ahmad Faizol ISMAIL & Rosalan ALI, 2024. "Relationship Between Bitcoin and Islamic Stock Indices During the COVID-19 Pandemic and the Russia-Ukraine Crisis," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 4(3), pages 1-8.
    • Handle: RePEc:ayb:jrnael:107
    DOI: 2024/07/01
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    References listed on IDEAS

    as
    1. Saleh Nawaz Khan, 2022. "The legality of cryptocurrency from an Islamic perspective: a research note," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 14(2), pages 289-294, August.
    2. Matos, Paulo & Costa, Antonio & da Silva, Cristiano, 2021. "COVID-19, stock market and sectoral contagion in US: a time-frequency analysis," Research in International Business and Finance, Elsevier, vol. 57(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cryptocurrency; Islamic stock indices; Bitcoin; Wavelet; Covid-19 and Russia-Ukraine war; Shock;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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