Relationship Between Precious Metal, Real Estate and Stocks During Covid-19

Abstract

This study will help us in investigating the relationship among stock, real estate and precious metal. To get the result for this study, two markets is analysed which is Pakistan and India. These emerging countries stocks helped us explain the impact of emerging markets on precious metal and real estate. To study the relationship, the stocks are taken from India and Pakistan market, precious metal data has been taken from MSCI world whereas real estate data has been taken from REITS data, all the above data series have been taken from data stream. The dataset of all these variables consists of the closing daily prices of Pakistan and India for stocks. The time period for which data has been selected is past 12 years, from 2010 to 2022 all the data closing prices were converted into returns and then further methodology is applied. The data result has been tested by NARDL method. First the data is tested for stationarity then applied ARDL Auto Regressive Distributed Lag and finally it is being tested using the NARDL method Non Linear Auto Regressive Distributed Lag. The result of this studies shows that in the long run stock had insignificant impact on precious metal and real estate in both countries, however in the short run the result were significant for Indian stock market do effect precious metal and real estate in the short run. Whereas in Pakistan the result showed no significance.