Is there a hidden quantum code that rules the Stock Market?



Recently, quantum gates and quantum circuits have been found when portfolios of stocks were simulated in quantum computation processes. This astonishing discover might be pointing out to the existence of a bizarre quantum code that rules the stock market transactions.

Quantum computation and financial markets

To take an advantage over the competition, financial institutions must adopt new scientific ideas and advanced technologies very early in their development. This is the case of quantum computers too.

Promised to be more powerful and faster than their classical counterparts, quantum computers captured the total attention of financial players lately.

A visionary Canadian venture, D-Wave Systems, came out in the market with the first quantum computer, a product that immediately caught the attention of some important buyers, Google, NASA, and Lockheed Martin.

Using the quantum adiabatic theorem at the core of their revolutionary processor, D-Wave Systems created this particular quantum computer that may be a major breakthrough for fields that encounters complex optimization problems to be solved, like advance search for cancer drugs or finance.

Finance may benefit from harnessing the power of adiabatic quantum computation to solve optimization of portfolios or logistic problems like the well-known, salesman problem.

Briefly, financial problems can be solved, in an adiabatic quantum computation, by initializing a system of particles into the ground state of a simple Hamiltonian, and then adiabatically evolving the Hamiltonian to one whose ground state encodes the solution to the problem.

The amazing thing here is that changing the quantum states of tiny particles can solve exclusively human related problems, like selecting an optimum portfolio of assets in the financial markets.

There is another angle to view the applicability of quantum computation to financial markets that refers to simulation of price movements of stocks in the portfolios. A recent paper [Quantum Gates and Quantum Circuits of Stock Portfolio] in applying quantum computation to model the stock price movements surprisingly suggests that the stock market itself is a complex quantum algorithm.

The mysterious quantum code of the Stock Market

One of the conventional models of quantum computers, working with quantum gates and quantum circuits, that is most reliable to be built in the near future is the topological quantum computer. The genuinely bizarre way topological quantum computer realize quantum computation arises to the attention of the scientific community in 1997, once A. Kitaev thought it may solve the error correction problem of quantum computers by means of topology.

Topology is concerned with the properties of geometric configurations that are unaltered by deformation. In the same manner the topological trajectories of theoretical quasi-particles formed braids are protecting the information against errors caused by local interactions with the environment. The quasi-particles are called anyons and are supposed to be found in fractional quantum Hall effect.

In topological quantum computation, quantum gates are simply implemented by braiding the quasi-particles trajectories in a predefined sequence.

What these quasi-particles and braided trajectories had to do with financial markets?

Here is the catch. The time series of prices of stocks in the portfolios are exhibiting the same braiding behavior, just like the collection of quasi-particles. From here to the idea of simulating the prices of stock movements in a portfolio on a quantum simulation is just a small step to take.

The astonishing thing is that, when simulating in topological quantum computation environment the time series of stock prices realize, in their braiding movement, elementary quantum gates. The quantum gates that prices of stocks in a portfolio are realized can be chained in quantum circuits.

It is absolutely fascinating to see how stocks of reputable companies like McDonalds or Walt Disney Company are literally realizing quantum gates in their New York Stock Exchange daily evolution.

Selecting a stock portfolio, from the shares of companies listed on Dow Jones Industrial Average market index, composed of McDonald's Corp. (MCD), The Walt Disney Company (DIS), American Express Company (AXP), and United Health Group Incorporated (UNH),an astonishing chain of quantum gates is recovered. Hadamard gate, Pauli gates and S-phase gate are all acting concerted in 1-qubit quantum circuit.

More complex quantum code structures arise considering increasing the number of stocks in the portfolio. 2-qubit quantum circuits are realized by adding Nike Inc. (NKE) and The Home Depot, Inc. (HD) to the initial portfolio of stocks.

Fragment of the Stock Market Quantum Algorithm realized by quantum computing simulation of a stock portfolio composed of: The Walt Disney Company (DIS), Nike Inc. (NKE), McDonald's Corp. (MCD), American Express Company (AXP), UnitedHealth Group Incorporated (UNH), The Home Depot, Inc. (HD)

Extended the process to the whole Dow Jones Industrial Average market index a mysterious quantum code of the stock market is revealed.

Here is the link to the quantum computational universe. This strange quantum code laying beneath the stock market transactions may be a small fragment of the universal code the entire Universe acts according with. This result may point out the shocking conclusion that New York Stock Exchange is perhaps a quantum computational virtual reality.

It may look hazardous to jump to this conclusion at so early stage of the research related to existence of quantum codes on the stock market. At the end of the day, a deeper and more troubling question may arise out of this story - Could the trajectories of particles express not only the quantum code beneath the stock market transactions but also the hidden code of our entire physical reality?




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