This research paper investigated the hedging effectiveness, dynamic dependence, safe haven ability, and portfolio diversification benefits of alternative assets (precious metals) with conventional and Islamic stock indices. The data covered the period from March 2011 to March 2021, and a copula model with switching dependence was utilized. The estimated transition probabilities demonstrated a high persistence of the same dependence regime in all estimated pairs. The research found that the use of precious metals with stocks for diversification is a favorable choice, proving them to be the best suitable solution to avoid risks. They also provide a save haven effect along with diversification benefits and reveal that risk reduction benefits vary with respect to portfolio types. The findings of the research indicate that negative shocks prompt investors to seek refuge in safe haven assets to safeguard their investments from extreme negative shocks. For most of the situations studied, precious metals provide the best and most effective hedge to stock returns. Overall, the addition of alternative assets to the stock portfolio reduces risks and provides better diversification benefits. Results vary depending on the circumstances of the country. These findings have practical implications for policymakers, fund managers, investors, and risk management practitioners, guiding them in their investment and risk management decisions.