Visions 4: Physics and finance
What have gases, random walks and Einstein got to do with banks and trading floors? Everything it seems
You might be surprised to hear that physics and money have anything in common. But they do. Managing money, just like a physics experiment, means dealing with numbers and varying quantities. And the connection goes deeper.
Physics is actually about developing general descriptions – mathematical models – of the world around us.
The models may describe different types of complexity, such as the movement of molecules in a gas or the dynamics of stars in a galaxy.
It turns out that similar models can just as well be applied to analogous complex behaviour in the financial markets.
Visions 4: Physics and finance (PDF, 268 KB)