Using the Quantum Potential in Elementary Portfolio Management: Some Initial Ideas

Owing to the globalization of the economy, the concept of entangled markets started to form, and this occurrence has smoothed the entrance of quantum mechanics into behavioral finance. In this manuscript, we introduce quantum risk and perform an analysis on portfolio optimization by controlling the...

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Autores principales: Khaksar, Hossein, Haven, Emmanuel, Nasiri, Sina, Jafari, Gholamreza
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7911337/
https://www.ncbi.nlm.nih.gov/pubmed/33573344
http://dx.doi.org/10.3390/e23020180
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author Khaksar, Hossein
Haven, Emmanuel
Nasiri, Sina
Jafari, Gholamreza
author_facet Khaksar, Hossein
Haven, Emmanuel
Nasiri, Sina
Jafari, Gholamreza
author_sort Khaksar, Hossein
collection PubMed
description Owing to the globalization of the economy, the concept of entangled markets started to form, and this occurrence has smoothed the entrance of quantum mechanics into behavioral finance. In this manuscript, we introduce quantum risk and perform an analysis on portfolio optimization by controlling the quantum potential. We apply this method to eight major indices and construct a portfolio with a minimum quantum risk. The results show quantum risk has a power law behavior with a time-scale just as a standard deviation with different exponents.
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spelling pubmed-79113372021-02-28 Using the Quantum Potential in Elementary Portfolio Management: Some Initial Ideas Khaksar, Hossein Haven, Emmanuel Nasiri, Sina Jafari, Gholamreza Entropy (Basel) Article Owing to the globalization of the economy, the concept of entangled markets started to form, and this occurrence has smoothed the entrance of quantum mechanics into behavioral finance. In this manuscript, we introduce quantum risk and perform an analysis on portfolio optimization by controlling the quantum potential. We apply this method to eight major indices and construct a portfolio with a minimum quantum risk. The results show quantum risk has a power law behavior with a time-scale just as a standard deviation with different exponents. MDPI 2021-01-30 /pmc/articles/PMC7911337/ /pubmed/33573344 http://dx.doi.org/10.3390/e23020180 Text en © 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
spellingShingle Article
Khaksar, Hossein
Haven, Emmanuel
Nasiri, Sina
Jafari, Gholamreza
Using the Quantum Potential in Elementary Portfolio Management: Some Initial Ideas
title Using the Quantum Potential in Elementary Portfolio Management: Some Initial Ideas
title_full Using the Quantum Potential in Elementary Portfolio Management: Some Initial Ideas
title_fullStr Using the Quantum Potential in Elementary Portfolio Management: Some Initial Ideas
title_full_unstemmed Using the Quantum Potential in Elementary Portfolio Management: Some Initial Ideas
title_short Using the Quantum Potential in Elementary Portfolio Management: Some Initial Ideas
title_sort using the quantum potential in elementary portfolio management: some initial ideas
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7911337/
https://www.ncbi.nlm.nih.gov/pubmed/33573344
http://dx.doi.org/10.3390/e23020180
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