4 ms·
Stock market forces can be modeled with a quantum harmonic oscillator
- Chris2048 9y ago> a good approximation of the market force that restores a fluctuating stock return to equilibrium Are we talking mean reversion here? A mathy example would be nice :-)
- drallison 9y ago"> modeling a particular market force that has been difficult to capture in previous models. Empirical evidence shows that, when a stock return is fluctuating in the short term, there exists a market force that draws the fluctuating stock return back to its long-run equilibrium. This force is related to the concept of mean reversion, which is the tendency of a stock to return to its average price." Talk of "market forces" and the like fall into the quantum voodoo school of economics, IMHO.
- Chris2048 9y agowait, is that right: > the tendency of a stock to return to its average price return to its historical average? As applied to all stocks, or certain, particular, mean-reverting stocks?