Searching Hedging Instruments Against Diverse Global Risks and Uncertainties

We evaluate the influence of five major uncertainty factors on four asset classes. Our time-varying findings suggest that each asset hedges only a particular uncertainty factor, whereas gold does more than one factor, especially during COVID-19. Our quantile regression results show that gold and Islamic stock can better hedge various uncertainty factors than Bitcoin and crude oil, depending on the market conditions. Our overall findings suggest that gold and Islamic stock appear more resilient against studied uncertainties than Bitcoin and crude oil. Our findings have crucial risk and portfolio management implications for investors, portfolio managers, and policymakers