Time-frequency analyses on the relationship of Islamic indices with financial assets

Islamic financial assets have become an indispensable tool in today's financial ecosystem. The purpose of this study is to examine whether a portfolio manager using Islamic financial products effectively uses the methods used for traditional risk protection and to reveal possible solutions. As a result of the examinations, it was concluded that especially equity-weighted Islamic financial assets could not show a significant difference from normal equity-weighted conventional financial assets on an index basis, and since they could not show this difference, they could not be used effectively in risk diversification. Following this result, research was carried out to create an index with new Islamic criteria and it was found that it performed relatively better than the Islamic financial indices used today in terms of risk allocation and performance.