I was wondering about your criteria to divide the Shariah-compliant stocks into degrees. What criteria should be met so the stock has the highest (5) degree of Shariah compliance on Musaffa?
Let’s say we do analyze 3000 companies and determine that 1000 of them are Shariah-compliant. Then we rank those Shariah-compliant companies based on their “halalness”. Top 20% most compliant companies get the ranking of 5. They will have the least amount of non-Shariah compliant revenue, least amount of interest-bearing securities and debt. More likely they will stay Shariah-compliant from quarter to quarter.