Related papers: Quantum Financial Economics - Risk and Returns
We present a formalism for studying the behaviour of quantum systems coupled to nonequilibrium environments exhibiting nonGaussian fluctuations. We discuss the role of a qubit as a detector of the statistics of environmental fluctuations,…
This paper aims at solving FX market volatility modeling problem and finding the most becoming approach to this task. Validity of two competing approaches, classical econometric generalized conditional heteroscedasticity and mathematical…
Starting from a simple classical framework and employing some stochastic concepts, the basic ingredients of the quantum formalism are recovered. It has been shown that the traditional axiomatic structure of quantum mechanics can be rebuilt,…
Simulating the dynamics of non-equilibrium matter under extreme conditions lies beyond the capabilities of classical computation alone. Remarkable advances in quantum information science and technology are profoundly changing how we…
Financial trading environments are characterized by high volatility, numerous macroeconomic signals, and dynamically shifting market regimes, where traditional reinforcement learning methods often fail to deliver breakthrough performance.…
Quantum evolutions are often non-unitary and in such cases, they are frequently regarded as lossy. Such lossiness, however, does not necessarily persist throughout the evolution, and there can often be intermediate time-spans during which…
What return should you expect when you take on a given amount of risk? How should that return depend upon other people's behavior? What principles can you use to answer these questions? In this paper, we approach these topics by exploring…
Quantum computers that process information by harnessing the remarkable power of quantum mechanics are increasingly being put to practical use. In the future, their impact will be felt in numerous fields, including in online casino games.…
This paper describes an approach to economics that is inspired by quantum computing, and is motivated by the need to develop a consistent quantum mathematical framework for economics. The traditional neoclassical approach assumes that…
Operational risk is the risk relative to monetary losses caused by failures of bank internal processes due to heterogeneous causes. A dynamical model including both spontaneous generation of losses and generation via interactions between…
In this paper, we provide a simple, ``generic'' interpretation of multifractal scaling laws and multiplicative cascade process paradigms in terms of volatility correlations. We show that in this context 1/f power spectra, as observed…
Financial crimes fast proliferation and sophistication require novel approaches that provide robust and effective solutions. This paper explores the potential of quantum algorithms in combating financial crimes. It highlights the advantages…
This paper considers links between the original risk-sensitive performance criterion for quantum control systems and its recent quadratic-exponential counterpart. We discuss a connection between the minimization of these cost functionals…
One the one hand, rough volatility has been shown to provide a consistent framework to capture the properties of stock price dynamics both under the historical measure and for pricing purposes. On the other hand, market price of volatility…
We investigate the thermodynamical properties of quantum fields in curved spacetime. Our approach is to consider quantum fields in curved spacetime as a quantum system undergoing an out-of-equilibrium transformation. The non-equilibrium…
We develop a theoretical trading conditioning model subject to price volatility and return information in terms of market psychological behavior, based on analytical transaction volume-price probability wave distributions in which we use…
The timing of strategic exit is one of the most important but difficult business decisions, especially under competition and uncertainty. Motivated by this problem, we examine a stochastic game of exit in which players are uncertain about…
We examine how the most prevalent stochastic properties of key financial time series have been affected during the recent financial crises. In particular we focus on changes associated with the remarkable economic events of the last two…
Emerging technologies challenge conventional governance approaches, especially when uncertainty is not a temporary obstacle but a foundational feature as in quantum computing. This paper reframes uncertainty from a governance liability to a…
We proposed a market simulation model (micro model) which displays multifractality and reproduces many important stylized facts of speculative markets. From this model we analytically extracted the MMAR model (Multifractal Model of Asset…