Exploring the Relationship Between the COVID-19 Pandemic, Crude Oil Prices, and the Stock Market in Saudi Arabia: Insights from Wavelet-Based Analysis

This investigation delves into the intricate interplay among the propagation of COVID-19, the turbulence in oil prices, and the noteworthy responses to the epidemic within Saudi Arabia. Employing a coherence wavelet analysis of daily datasets specific to Saudi Arabia, the study illuminates the pronounced influence of both COVID-19 and oil price shocks on stock market volatility across short/low-frequency bands. Notably, the impact of COVID-19 on the financial market surpasses that of Saudi oil prices, underlining its classification as a distinct economic crisis. The findings underscore urgent, consequential implications and advocate for pragmatic measures to mitigate the ramifications of COVID-19.