Impact of oil prices and exchange rate fluctuations on Islamic and conventional stocks: Comparative study of Turkiye and Russia

Study tries to find a link between an economy's oil trade position, oil prices, exchange rate depreciation, and the performance of its traditional and Islamic stock market. The study uses two widely used econometric models to do so. One being quantile connectedness approach, and the other being wavelet coherence. As wavelet coherence gives deeper understanding of pairwise correlations, we find our answers there. Russia and Turkiye were picked for substitutes for importing and exporting countries. Because both are quite similar in their positions in the international arena, as they are both stuck between the East and the West. Most importantly; both have faced high exchange rate depreciation in recent years, and they both have Islamic indices. And the results show that different from what was expected, oil prices do not affect the stock markets when the country is importing oil. But if the country is exporting oil like Russia the oil prices have direct correlation with the currency exchange rate and stock markets. Exchange rate depreciation has been found to be highly correlated on both country's stock markets. International policies, and economic circumstances that may affect the link between the variables was also taken into consideration. The results of this study advances our understanding of the relationship between oil trade, exchange rate, traditional stock market and Islamic stock market.