Dynamic Conditional Correlation and Volatility Spillover between Conventional and Islamic Stock Markets: Evidence from Developed and Emerging Countries

This study aims to investigate the dynamic conditional correlation and volatility spillover between conventional Islamic stock markets in developed emerging countries order develop better portfolio asset allocation strategies. We used both multivariate GARCH (MGARCH) multi-scales-based maximal overlap discrete wavelet transform (MODWT) approaches countries. The results show that move together long run for a specific time horizon present time-varying correlation, while movement changes due financial catastrophes market conditions. Further, findings point out Chinese indexes showed higher volatility, whereas Malaysian comparatively lower during global crisis. provides fresh insights practical implications risk management, allocation, diversification strategies evaluate reactions crisis international avenues of finance literature.