Visions 4: Physics and finance

What have gases, random walks and Einstein got to do with banks and trading floors? Everything it seems

Visions 4: Physics and finance

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)

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