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Stock market forces can be modeled with a quantum harmonic oscillator

9 pointsby shawnee_about 7 years ago

2 comments

drallisonabout 7 years ago
&quot;&gt; 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.&quot;<p>Talk of &quot;market forces&quot; and the like fall into the quantum voodoo school of economics, IMHO.
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Chris2048about 7 years ago
&gt; a good approximation of the market force that restores a fluctuating stock return to equilibrium<p>Are we talking mean reversion here? A mathy example would be nice :-)