ABSTRACT
This paper studies the relationship between conventional and Islamic stock markets in the US and worldwide ten years after the recent global financial crisis (GFC). Specifically, it empirically verifies whether the Islamic stock market would be a reliable alternative to the conventional one. Using wavelet analysis, we show a positive and significant correlation between the two stock markets, which has increased significantly in the aftermath of the GFC. This finding qualifies the Islamic stock market as a rather different market that could become a real alternative only if it proposes a less risky investment framework.
Disclosure statement
No potential conflict of interest was reported by the authors.