CALIBRATION OF QUANTUM HARMONIC OSCILLATOR AS A STOCK RETURN DISTRIBUTION MODEL ON THE INDEX OF NSEI

Abstract

Stock returns have a mixed distribution, which describes Gaussian and non-Gaussian characteristics of the stock return distribution, according to the solution of the Schrodinger equation for the quantum harmonic oscillator. As a model for the market force, A quantum harmonic oscillator which uses a stock return from short-run oscillations to long-run equilibrium will be suggested. We will calculate fitting errors and goodness of fit statistics by analysing the All-Share Index of the National Stock Exchange of India.