Related papers: Information Entropy of the Financial Market: Model…

We start with the idea that open quantum systems can be used to represent financial markets by modelling events from the external environment and their impact on the market price. We show how to characterize distinct orbits of the time…

We analyze complexity of financial (and general economic) processes by comparing classical and quantum-like models for randomness. Our analysis implies that it might be that a quantum-like probabilistic description is more natural for…

In the information-based approach to asset pricing the market filtration is modelled explicitly as a superposition of signals concerning relevant market factors and independent noise. The rate at which the signal is revealed to the market…

The amount of information generated by a discrete time stochastic processes in a single step can be quantified by the entropy rate. We investigate the differences between two discrete time walk models, the discrete time quantum walk and the…

Dissipative quantum systems are frequently described within the framework of the so-called "system-plus-reservoir" approach. In this work we assign their description to the Maximum Entropy Formalism and compare the resulting thermodynamic…

Complex systems are characterised by a tight, nontrivial interplay of their constituents, which gives rise to a multi-scale spectrum of emergent properties. In this scenario, it is practically and conceptually difficult to identify those…

Entropy generation in quantum sytems is tied to the existence of a nonclassical environment (heat bath or other) with which the system interacts. The continuous `measuring' of the open system by its environment induces decoherence of its…

We investigate entropy as a financial risk measure. Entropy explains the equity premium of securities and portfolios in a simpler way and, at the same time, with higher explanatory power than the beta parameter of the capital asset pricing…

The fundamental question of how information spreads in closed quantum many-body systems is often addressed through the lens of the bipartite entanglement entropy, a quantity that describes correlations in a comprehensive (nonlocal) way.…

Employing the stochastic wave function method, we study quantum features of stochastic entropy production in nonequilibrium processes of open systems. It is demonstarted that continuous measurements on the environment introduce an…

Many important quantities in quantum information science, such as entropy and entanglement, are non-linear functions of the density matrix and cannot be expressed as operator observables. Standard open-system approaches evolve only a single…

We introduce ways to measure information storage in quantum systems, using a recently introduced computation-theoretic model that accounts for measurement effects. The first, the quantum excess entropy, quantifies the shared information…

Modern approaches to stock pricing in quantitative finance are typically founded on the 'Black-Scholes model' and the underlying 'random walk hypothesis'. Empirical data indicate that this hypothesis works well in stable situations but, in…

Quantum computers are not yet up to the task of providing computational advantages for practical stochastic diffusion models commonly used by financial analysts. In this paper we introduce a class of stochastic processes that are both…

All natural things process and transform information. They receive environmental information as input, and transform it into appropriate output responses. Much of science is dedicated to building models of such systems -- algorithmic…

The advantages of quantum information processing are in many cases obtained as consequences of quantum interactions, especially for computational tasks where two-qubit interactions are essential. In this work, we establish the framework of…

The continuous time stochastic process is a mainstream mathematical instrument modeling the random world with a wide range of applications involving finance, statistics, physics, and time series analysis, while the simulation and analysis…

In this paper we present an interacting-agent model of stock markets. We describe a stock market through an Ising-like model in order to formulate the tendency of traders getting to be influenced by the other traders' investment attitudes…

After Shannon, entropy becomes a fundamental quantity to describe not only uncertainity or chaos of a system but also information carried by the system. Shannon's important discovery is to give a mathematical expression of the mutual…

In this study, we explore the information capacity of open quantum systems, focusing on the effective channels formed by the subsystem of random quantum circuits and quantum Hamiltonian evolution. By analyzing the subsystem information…