English
Related papers

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

200 papers

In closed quantum many-body systems, initially localized information spreads throughout the system and becomes highly complex. This phenomenon, known as information scrambling, is closely related to entropy growth and quantum…

Quantum Physics · Physics 2025-02-12 Yuke Zhang , Zeyu Liu , Shuo Zhang , Langxuan Chen , Pengfei Zhang

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…

General Finance · Quantitative Finance 2021-03-22 David Orrell , Monireh Houshmand

Accurate and efficient pricing of multi-asset basket options poses a significant challenge, especially when dealing with complex real-world data. In this work, we investigate the role of quantum-enhanced uncertainty modeling in financial…

Quantum Physics · Physics 2026-02-12 Muhammad Kashif , Shaf Khalid , Nouhaila Innan , Alberto Marchisio , Muhammad Shafique

Econophysics has developed as a research field that applies the formalism of Statistical Mechanics and Quantum Mechanics to address Economics and Finance problems. The branch of Econophysics that applies of Quantum Theory to Economics and…

Computational Finance · Quantitative Finance 2015-08-27 Carlos Pedro Gonçalves

This paper introduces a comprehensive framework for Financial Information Theory by applying information-theoretic concepts such as entropy, Kullback-Leibler divergence, mutual information, normalized mutual information, and transfer…

Portfolio Management · Quantitative Finance 2025-11-21 Miquel Noguer i Alonso

The present paper describes a practical example in which the probability distribution of the prices of a stock market blue chip is calculated as the wave function of a quantum particle confined in a potential well. This model may naturally…

General Finance · Quantitative Finance 2019-02-28 J. L. Subias

Open quantum systems are highly relevant, both for practical applications as well as for fundamental questions about the nature of information and its transfer, encompassing for example decoherence and memory effects. Quantum mechanics…

Before the massive spread of computer technology, information was far from complex. The development of technology shifted the paradigm: from individuals who faced scarce and costly information to individuals who face massive amounts of…

Statistical Finance · Quantitative Finance 2020-10-26 Giuseppe Pernagallo , Benedetto Torrisi

Living systems often function with regulatory interactions, but the question of how activity, stochasticity and regulations work together for achieving different goals still remains puzzling. We propose a stochastic model of an active…

Soft Condensed Matter · Physics 2026-03-02 Tai Han , Fanlong Meng

Characterizing correlations in a quantum system on the basis of the results of the projective measurements can be performed with different means including the calculation of the classical mutual information. Generally, estimating such…

Quantum Physics · Physics 2026-05-05 D. A. Konyshev , V. V. Mazurenko

We develop a martingale theory to describe fluctuations of entropy production for open quantum systems in nonequilbrium steady states. Using the formalism of quantum jump trajectories, we identify a decomposition of entropy production into…

Quantum Physics · Physics 2019-06-12 Gonzalo Manzano , Rosario Fazio , Édgar Roldán

Quantum chaos is presented as a paradigm of information processing by dynamical systems at the bottom of the range of phase-space scales. Starting with a brief review of classical chaos as entropy flow from micro- to macro-scales, I argue…

Quantum Physics · Physics 2019-05-01 Thomas Dittrich

Many of the traditional results in information theory, such as the channel coding theorem or the source coding theorem, are restricted to scenarios where the underlying resources are independent and identically distributed (i.i.d.) over a…

Quantum Physics · Physics 2009-06-28 Nilanjana Datta , Renato Renner

We model continuous-time information flows generated by a number of information sources that switch on and off at random times. By modulating a multi-dimensional L\'evy random bridge over a random point field, our framework relates the…

Probability · Mathematics 2020-05-14 Edward Hoyle , Andrea Macrina , Levent A. Mengütürk

Open quantum systems interact with their environment and their dynamical behaviour depends strongly both on the spectral properties of the environment and the structure of the interaction between the physical system and the environment. We…

Quantum Physics · Physics 2019-10-02 Tarek Khalil , Jean Richert

We present results on simulations of a stock market with heterogeneous, cumulative information setup. We find a non-monotonic behaviour of traders' returns as a function of their information level. Particularly, the average informed agents…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Bence Toth , Enrico Scalas

We show that the entropy of a message can be tested in a device-independent way. Specifically, we consider a prepare-and-measure scenario with classical or quantum communication, and develop two different methods for placing lower bounds on…

Quantum Physics · Physics 2015-09-09 Rafael Chaves , Jonatan Bohr Brask , Nicolas Brunner

The Bohmian quantum approach is implemented to analyze the financial markets. In this approach, there is a wave function that leads to a quantum potential. This potential can explain the relevance and entanglements of the agent's behaviors…

General Finance · Quantitative Finance 2012-12-19 F. Tahmasebi , S. Meskini , A. Namaki , G. R. Jafari

This paper introduces an approach to gas-like models, from the concept of entropy, using the money stock data of two economic agents, in this case of two countries, which carry out market actions (trading) in two theoretical scenarios: in…

Physics and Society · Physics 2024-06-25 Henry D. Vera Ramirez

In statistical physics entropy is usually introduced as a global quantity which expresses the amount of information that would be needed to specify the microscopic configuration of a system. However, for lattice models with infinitely many…

Statistical Mechanics · Physics 2015-06-12 Ulrich Müller , Haye Hinrichsen