Quantum tunneling in financial markets?

[ovidiu69]

Is it possible that nuclear physics and financial markets to fallow the same laws of Nature? This paper suggest that.

https://www.researchgate.net/publication/251876307_Quantum_Tunneling_of_Stock_Price_in_Range_Bound_Market_Conditions

[swansont]

"Laws of nature" is a reach, since financial rules are of our own making. Does the same math sometimes apply to physics and finance? Sure. Happens quite a bit, which is why Wall Street hires physicists.

[Bill Angel]

I only read the abstract, but one statement in it is worth commenting on:

"The equation is identical with a

time-independent Schrodinger equation but incorporates elements of finance"

I'm skeptical of time-independent equations accurately quantifying risk in the financial markets. For example, no time independent equations would have quantified the risk of the effects on the markets of the September 11, 2001 terrorist attacks BEFORE the attacks occurred, or of the more recent melt down in the real estate markets.

[ovidiu69]

Bill, the paper only emphasize with the probability with certain price movements in the market if some particular conditions apply. It not, by any means try to predict market behavior as a whole.

 

Quantum physics is already weird enough even without a quantum tunneling in financial markets.

[swansont]

I only read the abstract, but one statement in it is worth commenting on:

"The equation is identical with a

time-independent Schrodinger equation but incorporates elements of finance"

I'm skeptical of time-independent equations accurately quantifying risk in the financial markets. For example, no time independent equations would have quantified the risk of the effects on the markets of the September 11, 2001 terrorist attacks BEFORE the attacks occurred, or of the more recent melt down in the real estate markets.

 

In general that's not a problem; the time evolution can often be tacked on later (i.e. the variables can be separated).