Quantum Gates and Quantum Circuits of Stock Portfolio

TL;DR

This paper explores how stock market data can be modeled as quantum gates and circuits using the Ising anyons framework, revealing a potential quantum code underlying market behavior.

Contribution

It introduces a novel approach to represent stock portfolios as quantum gates and circuits based on braids and Ising anyons, bridging quantum computation and financial data analysis.

Findings

Stock price time series form braids simulating quantum gates.

Elementary quantum gates are identified within stock market structures.

A sequence of n-qubits quantum gates may encode a quantum market code.

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-qubits 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-qubits quantum gates that form a quantum code. Deciphering this mysterious quantum code of the stock market is an issue for future investigations.