The probability flow in the Stock market and Spontaneous symmetry breaking in Quantum Finance
The Spontaneous Symmetry breaking in Quantum Finance considers the martingale condition in the stock market as a vacuum state if we express the financial equations in the Hamiltonian form. The original analysis for this phenomena ignores completely the kinetic terms in the neighborhood of the minimal of the potential terms. This is correct in most of the cases. However, when we deal with the Martingale condition, it comes out that the kinetic terms can also behave as potential terms and then reproduce a shift on the effective location of the vacuum (Martingale). In this paper we analyze the effective symmetry breaking patterns and the connected vacuum degeneracy for these special circumstances. Within the same scenario, we analyze the connection between the flow of information and the multiplicity of martingale states, providing in this way powerful tools for analyzing the dynamic of the stock market.
Code (0)
등록된 구현이 없습니다.
Similar Papers 제목 키워드 기반
On the multiplicity of the martingale condition: Spontaneous symmetry breaking in Quantum Finance
We demonstrate that the martingale condition in the stock market can be interpreted as a vacuum condition when we express the financial equations in the Hamiltonian form. We then show that the symmetry under the changes …
On the probability flow in the Stock market I: The Black-Scholes case
It is known that the probability is not a conserved quantity in the stock market, given the fact that it corresponds to an open system. In this paper we analyze the flow of probability in this system by expressing the id…
Stylized facts of the Indian Stock Market
Historical daily data for eleven years of the fifty constituent stocks of the NIFTY index traded on the National Stock Exchange have been analyzed to check for the stylized facts in the Indian market. It is observed that…
Spontaneous symmetry breaking in Quantum Finance
We analyze the phenomena of spontaneous symmetry breaking in Quantum Finance by using as a starting point the Black-Scholes (BS) and the Merton-Garman (MG) equations expressed in the Hamiltonian form. In this scenario th…
Forecasting High Frequency Order Flow Imbalance
Market information events are generated intermittently and disseminated at high speeds in real-time. Market participants consume this high-frequency data to build limit order books, representing the current bids and offe…