Centrality measures for Shariah-compliant securities listed on Bursa Malaysia

Bahaludin, Hafizah and Mahamood, Fatin Nur Amirah and Abdullah, Mimi Hafizah and Fauzi, Muhammad Ashraf and Omar, Mawardi (2023) Centrality measures for Shariah-compliant securities listed on Bursa Malaysia. Menemui Matematik, 45 (1). pp. 85-103. ISSN 2231-7023

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Abstract

An interrelationship between each of the specified Bursa Malaysia’s securities can be calculated using the correlation measure. However, there were a considerable number of these securities, thus, making it difficult to visualise their correlation. To overcome this issue, this association could be illustrated as a single network based on its correlation input. This research constructed a network between the securities listed on Bursa Malaysia, which centred on the Shariah-compliant stocks. Seven centrality measures, such as degree, betweenness, closeness, eigenvector, eccentricity, strength, and average of weight centrality, were used to determine the primary node of the network. The analysis utilised one hundred and 21 stocks from 2008 to 2018, which was divided into two periods, namely, during and after the 2008 global financial crisis (GFC). Additionally, the principal component analysis (PCA) was adopted to determine the main hub’s transformations during these two intervals. Finally, this study provided the market participants with valuable information established in a network for the portfolio selection strategy.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Bursa Malaysia, centrality measure, minimum spanning tree
Subjects:	Q Science > QA Mathematics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Science Kulliyyah of Science > Department of Computational and Theoretical Sciences
Depositing User:	Hafizah Bahaludin
Date Deposited:	18 Jul 2023 09:01
Last Modified:	21 Dec 2023 12:53
URI:	http://irep.iium.edu.my/id/eprint/105603

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