Time-frequency dependency between stock market volatility, and Islamic gold-backed and conventional cryptocurrencies


  • Md. Mamunur Rashid Department of Finance and Banking, Islamic University, Kushtia-7003, Bangladesh
  • Md. Ruhul Amin Department of Finance and Banking, Islamic University, Kushtia-7003, Bangladesh




Stock market volatility, Time-frequency dependency, Conventional Cryptocurrencies, Islamic gold-backed cryptocurrencies


We extend the Shariah-compliant digital assets and Islamic Fintech literature through exploring the time-frequency associations between the volatility index (VIX) and cryptocurrencies (both Islamic and traditional). Employing wavelet-based technique, we find that Islamic cryptocurrencies demonstrate low or no coherency with stock market volatility compared to traditional cryptocurrencies (except Tether) during the whole time and frequency bands, highlighting the hedging capabilities of Islamic cryptocurrencies. Tether also serves the same against VIX, as there is a low or favorable link between these variables. Finally, our findings would be prolific to digital currency traders and investors in designing the portfolio strategies.

Author Biography

Md. Ruhul Amin, Department of Finance and Banking, Islamic University, Kushtia-7003, Bangladesh

Dr. Md. Ruhul Amin is a Professor of Finance and Banking at Islamic University, Bangladesh. His area of research interests are Financial Markets, Islamic Finance, Risk Management, Cryptocurrency etc. Dr. Amin has some publications in referred journals, such as International Journal of Emerging Markets, Journal of Risk and Financial Management, Journal of Economic Analysis etc.


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How to Cite

Rashid, M. M., & Amin, M. R. (2023). Time-frequency dependency between stock market volatility, and Islamic gold-backed and conventional cryptocurrencies. Financial Economics Letters, 2(1), 1–10. https://doi.org/10.58567/fel02010001