Quantum Gates and Quantum Circuits of Stock Portfolio

Abstract

In quantum computation, series of quantum gates have to be arranged in a predefined sequence that led to a quantum circuit in order to solve a particular problem. What if the sequence of quantum gates is known but both the problem to be solved and the outcome of the so defined quantum circuit remain in the shadow? This is the situation of the stock market. The price time series of a portfolio of stocks are organized in braids that effectively simulate quantum gates in the hypothesis of Ising anyons quantum computational model. Following the prescriptions of Ising anyons model, 1-qubit quantum gates are constructed for portfolio composed of four stocks. Adding two additional stocks at the initial portfolio result in 2-qubit quantum gates and circuits. Hadamard gate, Pauli gates or controlled-Z gate are some of the elementary quantum gates that are identified in the stock market structure. Addition of other pairs of stocks, that eventually represent a market index, like Dow Jones industrial Average, it results in a sequence of n-qubit quantum gates that form a quantum code. Deciphering this mysterious quantum code of the stock market is an issue for future investigations.

Predictability and herding of bourse volatility: an econophysics analogue

“…Ausloos, Belgian scientist (Ausloos, 1998), predicted 1987 US stock market crash with his econophysics model (though as hindcast). Quantum gate effect in stock markets (Racorean, 2015), Shannon entropy as a better proxy over GARCH (Bentes & Menezes, 2012) and cash-flow viscosity-based turbulence predictor (Los, 2004) were some of the breakthrough works in last two decades.…”

“…could behave like eigenvectors in all possible directions. An eminent Romanian researcher (Racorean, 2015) echoed them as well while proving that bourses are nothing but quantum gates. Putting these thoughts together and stitching them carefully with specific stochastic oscillators generated financial Reynolds number.…”

Identifying explosive behavioral trace in the CNX Nifty Index: a quantum finance approach

“…Two Chinese researchers (Zhang & Huang, 2010) defined the relation of Chinese stocks in a defined circuit filter with a quantum well, but did not continue it further. Similarly, Racorean (2015) found out that security prices are behaving like quantum particles within range bound markets. Cotfas (2013) also did his rate of return modeling inside a well-defined finite-dimensional Hilbert space.…”