Volatility Spill-over between the Stock Market and the Foreign Exchange Market in Pakistan

This paper investigates the instability overflow within stock market and the foreign exchange market in Pakistan. We used GARCH and EGARCH technique for the long term association and the instability overflow is formed. The expected consequences from co-amalgamation examination demonstrate that there is no lasting association connecting the two marketplaces. The consequences from the instability forming demonstrate that the performances of together the stock exchange and the foreign exchange markets are interconnected. The takings of one market are influenced by the instability of the new market. Specifically, the takings of the stock market are responsive to the takings and the instability of the foreign exchange market. Alternatively, takings in the foreign exchange market are denoting relapse which are influenced by the instability of stock market takings. There is a significant association within the instability of the foreign exchange market and the instability of takings in the stock market.