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Related papers: A Quantum Approach to Stock Price Fluctuations

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Recently a model of metric fluctuations has been proposed which yields an effective Schr\"odinger equation for a quantum particle with a modified inertial mass, leading to a violation of the weak equivalence principle. The renormalization…

General Relativity and Quantum Cosmology · Physics 2015-06-26 H. -P. Breuer , E. Göklü , C. Lämmerzahl

In the Cont-Bouchaud model [cond-mat/9712318] of stock markets, percolation clusters act as buying or selling investors and their statistics controls that of the price variations. Rather than fixing the concentration controlling each…

Statistical Mechanics · Physics 2009-10-31 Dietrich Stauffer , D. Sornette

In this paper we expand our previous investigation of a quantum particle subject to the action of a random potential plus a fixed harmonic potential at a finite temperature T. In the classical limit the system reduces to a well-known…

Condensed Matter · Physics 2009-10-28 Yadin Y. Goldschmidt

We investigate the volatility return intervals in the NYSE and FOREX markets. We explain previous empirical findings using a model based on the interacting agent hypothesis instead of the widely-used efficient market hypothesis. We derive…

General Finance · Quantitative Finance 2016-10-26 Vygintas Gontis , Shlomo Havlin , Aleksejus Kononovicius , Boris Podobnik , H. Eugene Stanley

We show that a quantum state may be represented as the sum of a joint probability and a complex quantum modification term. The joint probability and the modification term can both be observed in successive projective measurements. The…

Quantum Physics · Physics 2007-11-21 Lars M. Johansen

Financial time series exhibit a number of interesting properties that are difficult to explain with simple models. These properties include fat-tails in the distribution of price fluctuations (or returns) that are slowly removed at longer…

Statistical Finance · Quantitative Finance 2013-11-19 Raoul Golan , Austin Gerig

We consider the tail probabilities of stock returns for a general class of stochastic volatility models. In these models, the stochastic differential equation for volatility is autonomous, time-homogeneous and dependent on only a finite…

Statistical Finance · Quantitative Finance 2019-03-21 Henrik O. Rasmussen , Paul Wilmott

We reconsider the problem of the interpretation of the Quantum Theory (QT) in the perspective of the entire universe and of Bphr idea that the classical language is the language of our experience and QT acquires a meaning only with a…

Quantum Physics · Physics 2023-04-17 Giovanni M. Prosepri , Massimiliano Baldicchi

This paper proposes a governing equation for stock market indexes that accounts for non-stationary effects. This is a linear Fokker-Planck equation (FPE) that describes the time evolution of the probability distribution function (PDF) of…

Statistical Finance · Quantitative Finance 2020-08-25 Karina Arias-Calluari , Morteza. N. Najafi , Michael S. Harré , Fernando Alonso-Marroquin

Special relativity combined with the stochastic vacuum flux impact model lead to an explicit interpretation of many of the phenomena of elementary quantum mechanics. We examine characteristics of a repetitively impacted submicroscopic…

General Physics · Physics 2007-05-23 C. L. Herzenberg

We derive the fluctuation theorem for quantum-state statistics that can be obtained when we initially measure the total energy of a quantum system at thermal equilibrium, let the system evolve unitarily, and record the quantum-state data…

Statistical Mechanics · Physics 2018-08-01 Naoto Tsuji , Masahito Ueda

This paper systematically conducts an analysis of the composite index 1-min datasets over the 17-year period (2005-2021) for both the Shanghai and Shenzhen stock exchanges. To reveal the difference between the Chinese and the mature stock…

Statistical Finance · Quantitative Finance 2023-11-27 Peng Liu , Yanyan Zheng

Stock prices are known to exhibit non-Gaussian dynamics, and there is much interest in understanding the origin of this behavior. Here, we present a model that explains the shape and scaling of the distribution of intraday stock price…

Statistical Finance · Quantitative Finance 2015-05-13 Austin Gerig , Javier Vicente , Miguel A. Fuentes

It is well known that the probability distribution of high-frequency financial returns is characterized by a leptokurtic, heavy-tailed shape. This behavior undermines the typical assumption of Gaussian log-returns behind the standard…

Statistical Finance · Quantitative Finance 2023-06-14 Federica De Domenico , Giacomo Livan , Guido Montagna , Oreste Nicrosini

We consider $N$ non-interacting fermions performing continuous-time quantum walks on a one-dimensional lattice. The system is launched from a most compact configuration where the fermions occupy neighboring sites. We calculate exactly the…

Mesoscale and Nanoscale Physics · Physics 2018-02-13 P. L. Krapivsky , J. M. Luck , K. Mallick

We construct a general stochastic process and prove weak convergence results. It is scaled in space and through the parameters of its distribution. We show that our simplified scaling is equivalent to time scaling used frequently. The…

Probability · Mathematics 2011-07-01 Mine Caglar

Large tick assets, i.e. assets where one tick movement is a significant fraction of the price and bid-ask spread is almost always equal to one tick, display a dynamics in which price changes and spread are strongly coupled. We introduce a…

Trading and Market Microstructure · Quantitative Finance 2015-06-17 Gianbiagio Curato , Fabrizio Lillo

Decay law of a complicated unstable state formed in a high energy collision is described by the Fourier transform of the two-point correlation function of the scattering matrix. Although each constituent resonance state decays exponentially…

Mesoscale and Nanoscale Physics · Physics 2009-11-13 Valentin V. Sokolov

We establish the general framework of quantum fluctuation theorems by finding the symmetry between the forward and backward transitions of any given quantum channel. The Petz recovery map is adopted as the reverse quantum channel, and the…

Quantum Physics · Physics 2019-08-23 Hyukjoon Kwon , M. S. Kim

We introduce a weighed scalar average formalism ("q-average") for the study of the theoretical properties and the dynamics of spherically symmetric Lemaitre-Tolman-Bondi (LTB) dust models models. The "q-scalars" that emerge by applying the…

General Relativity and Quantum Cosmology · Physics 2015-06-11 Roberto A. Sussman
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