Is islamic stock index related with conventional stock index ? evidence from the UK

There has been an ongoing controversy for a long time as to whether the Islamic stock is related with the conventional stock or not. This paper empirically investigates whether the Islamic stock index is indeed related with the conventional stock index. The United Kingdom is taken as a case study The standard time series techniques have been employed for the analysis. The findings tend to indicate that the Islamic stocks are driven by the conventional stocks and inflation and not the other way around. These results cast doubt on the view that the Islamic stocks are independent of the influence of the conventional stocks at least in the context of the United Kingdom. The findings have important policy implications for the investors, practitioners and policymakers