Pareto lévy in Islamic stock markets: a research agenda for Islamic finance

  • Authors

    • Felicia Chong Hui Ling RESEARCH sCHOLAR
    • Rusnah Muhamad PROFESSOR
    2019-09-04
    https://doi.org/10.14419/ijet.v8i3.15059
  • Islamic Finance, Pareto Lévy, Portfolio, Risk, Statistical Physics.

  • Abstract

    This research note suggests an alternative approach to study the characteristics of Islamic financial markets in ways allowing one to observe the actual characteristics of the market and to model its characteristics analytically while avoiding incorrect postulations especially during high market volatility. It unfolds the non-Gaussian truth when managing Islamic portfolios to pave ways for prudent portfolio approaches. We present this approach using mathematical illustrations and specific structures in physics to reinforce new orientation and strategy in Islamic equities management. Our observation suggests that future investigations should consider anomalous volatilities in modeling the financial markets for enhanced portfolio management.

     

     

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  • How to Cite

    Chong Hui Ling, F., & Muhamad, R. (2019). Pareto lévy in Islamic stock markets: a research agenda for Islamic finance. International Journal of Engineering & Technology, 8(3), 279-283. https://doi.org/10.14419/ijet.v8i3.15059

    Received date: 2018-07-04

    Accepted date: 2018-07-05

    Published date: 2019-09-04