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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

Intrinsic time is an example of an event-based conception of time, used to analyze financial time series. Here, for the first time, we reveal the connection between intrinsic time and physical time. In detail, we present an analytic…

Trading and Market Microstructure · Quantitative Finance 2022-04-07 James B. Glattfelder , Anton Golub

Many modern computational approaches to classical problems in quantitative finance are formulated as empirical loss minimization (ERM), allowing direct applications of classical results from statistical machine learning. These methods,…

Machine Learning · Statistics 2022-09-27 A. Max Reppen , H. Mete Soner

Time series prediction (TSP) has been widely used in various fields, such as life sciences and finance, to forecast future trends based on historical data. However, to date, there has been relatively little research conducted on the TSP for…

Quantum Physics · Physics 2024-01-15 Zhao-Wei Wang , Zhao-Ming Wang

We use the free evolution propagator to determine the quantum probability representation (i.e., the general expression of the tomogram) of any one-dimensional system described by a density state. The evolution operator for the considered…

Open quantum systems exhibit a rich phenomenology, in comparison to closed quantum systems that evolve unitarily according to the Schr\"odinger equation. The dynamics of an open quantum system are typically classified into Markovian and…

Stylized facts can be regarded as constraints for any modeling attempt of price dynamics on a financial market, in that an empirically reasonable model has to reproduce these stylized facts at least qualitatively. The dynamics of market…

Computational Finance · Quantitative Finance 2010-04-12 Stefan Reimann , Andreas Tupak

Open Quantum Walks (OQW) are a type of quantum walk governed by the system's interaction with its environment. We explore the time evolution and the limit behavior of the OQW framework for Quantum Computation and show how we can represent…

Quantum Physics · Physics 2025-09-30 Pedro Linck Maciel , Nadja K. Bernardes

We introduce the notion of time reversal in open quantum systems as represented by linear quantum operations, and a related generalization of classical entropy production in the environment. This functional is the ratio of the probability…

Quantum Physics · Physics 2016-07-26 Erik Aurell , Jakub Zakrzewski , Karol Życzkowski

We present efficient quantum algorithms for simulating time-dependent Hamiltonian evolution of general input states using an oracular model of a quantum computer. Our algorithms use either constant or adaptively chosen time steps and are…

Quantum Physics · Physics 2011-11-03 Nathan Wiebe , Dominic W. Berry , Peter Hoyer , Barry C. Sanders

We show how the quantum to classical transition of the cosmological fluctuations produced during inflation can be described by means of the influence functional and the master equation. We split the inflaton field into the system-field…

General Relativity and Quantum Cosmology · Physics 2016-08-31 Fernando C. Lombardo , Diana Lopez Nacir

We propose a protocol to simulate the evolution of a non-Markovian open quantum system by considering a collisional process with a many-body system, which plays the role of an environment. As a result of our protocol the environment spatial…

Quantum Physics · Physics 2017-12-18 Eduardo Mascarenhas , Ines de Vega

We develop an analysis of the cryptocurrency market borrowing methods and concepts from ecology. This approach makes it possible to identify specific diversity patterns and their variation, in close analogy with ecological systems, and to…

Statistical Finance · Quantitative Finance 2022-07-22 Edgardo Brigatti , Estevan Augusto Amazonas Mendes

Two particles, initially in a product state, become entangled when they come together and start to interact. Using semiclassical methods, we calculate the time evolution of the corresponding reduced density matrix $\rho_1$, obtained by…

Quantum Physics · Physics 2009-11-10 Philippe Jacquod

Models for open quantum systems, which play important roles in electron transport problems and quantum computing, must take into account the interaction of the quantum system with the surrounding environment. Although such models can be…

Quantum Physics · Physics 2024-07-17 Ke Wang , Xiantao Li

A new model for stocks markets using integer values for each stock price is presented. In contrast with previously reported models, the variables used in the model are not of binary type, but of more general integer type. It is shown how…

Condensed Matter · Physics 2007-05-23 Juan R. Sanchez

The exchange of information between an open quantum system and its environment allows us to discriminate among different kinds of dynamics, in particular detecting memory effects to characterize non-Markovianity. Here, we investigate the…

Quantum Physics · Physics 2021-04-28 Andrea Smirne , Nina Megier , Bassano Vacchini

This paper uses the development of multi-agent market models to present a unified approach to the joint questions of how financial market movements may be simulated, predicted, and hedged against. We examine the effect of different market…

Condensed Matter · Physics 2009-10-31 P. Jefferies , M. L. Hart , P. M. Hui , N. F. Johnson

Differential equations can be used to construct predictive models of a diverse set of real-world phenomena like heat transfer, predator-prey interactions, and missile tracking. In our work, we explore one particular application of…

Pricing of Securities · Quantitative Finance 2025-10-28 Brandon Kaplowitz , Siddharth G. Reddy

The Lindblad equation describes the dissipative time evolution of a density matrix that characterizes an open quantum system in contact with its environment. The widespread ensemble interpretation of a density matrix requires its time…

Quantum Physics · Physics 2020-09-04 Bernd Fernengel , Barbara Drossel
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