An econophysics approach to introduction uncertainty in dynamics of complex market structural models

Abstract

Econophysicists have begun to make progress in answering significant questions. In particular, these collaborations have the potential to change the paradigm for understanding fluctuations. New theoretical approaches to predict complex markets may be proposed, by the captivating formulation of the stock market concerning statistical correlation to be given, where some simple (non-differential, non-fractal) expressions are also suggested as general stock price formulae in a closed form that can generate a variety of possible price movements in time. A given attribute of mechanics may be submitted as a likely option to cover the price movements regarding traditional concepts where utilising stock mechanics to grow the portfolios in real markets may be realised. The ideas prove useful in risk evaluation, extreme value statistics, critical limit theorems for sums of independent variables with power law distribution, random walks, fractals, and multfractal formalisms, etc. © 2018, IGI Global.