Journal of Mathematical Finance, 2016, 6, 43-47
Published Online February 2016 in SciRes. http://www.scirp.org/journal/jmf
http://dx.doi.org/10.4236/jmf.2016.61005
How to cite this paper: Kountzakis, C.E. and Koutsouraki, M.P. (2016) On Quantum Risk Modelling. Journal of Mathematical
Finance, 6, 43-47. http://dx.doi.org/10.4236/jmf.2016.61005
On Quantum Risk Modelling
Christos E. Kountzakis, Maria P. Koutsouraki
Department of Mathematics, University of the Aegean, Karlovassi, Samos, Greece
Received 12 May 2015; accepted 14 February 2016; published 17 February 2016
Copyright © 2016 by authors and Scientific Research Publishing Inc.
This work is licensed under the Creative Commons Attribution International License (CC BY).
http://creativecommons.org/licenses/by/4.0/
Abstract
This paper is devoted to the connection between the probability distributions which produce so-
lutions of the one-dimensional, time-independent Schrödinger Equation and the Risk Measures’
Theory. We deduce that the Pareto, the Generalized Pareto Distributions and in general the dis-
tributions whose support is a pure subset of the positive real numbers, are adequate for the defi-
nition of the so-called Quantum Risk Measures. Thanks both to the finite values of them and the
relation of these distributions to the Extreme Value Theory, these new Risk Measures may be use-
ful in cases where a discrimination of types of insurance contracts and the volume of contracts has
to be known. In the case of use of the Quantum Theory, the mass of the quantum particle repre-
sents either the volume of trading in a financial asset, or the number of insurance contracts of a
certain type.
Keywords
Hamiltonian, Eingenvalues, Continuous Spectrum, Quantum Risk Measure
1. Introduction
As it is mentioned in [1], the cause for the use of the use of quantum theory in risk models and finance is their
complexity, in the sense that the return of an asset or the value of it depends on several factors. At this point we
may quote that though there exists a broad literature in finance which relies on the notions of quantum
mechanics, there is a lack of literature which connects quantum mechanics’ modelling and risk theory. A semi-
nal reference in quantum finacnce is the paper under the same title [2], which refers to the basics of this subject.
Another essential reference is [3], which is more related to asset pricing. The other book [4] by the same author
is related to interest rates and bond pricing. We write this paper in order to contribute in the research on the
relation between quantum finance and risk theory where there is not so much literature. A central role in the
theory of risk models recently belongs to the risk measures. Since the main objective of this paper is the risk
measures on Hamiltonian operators, it is useful to remind some essential notions from quantum theory, which
are useful in the sequel (see [5]).