Stock mechanics: theory of conservation of total energy and predictions of coming short-term fluctuations of Dow Jones Industrials Average (DJIA)

2006/02/08 by Çağlar Tunçay, Caglar Tuncay, Tuncay, Caglar
Economics, Econometrics and Finance · Physics and Astronomy · #Advanced Thermodynamics and Statistical Mechanics #Complex Systems and Time Series Analysis #Computational Physics (physics.comp-ph) #FOS: Economics and business #FOS: Physical sciences #Physics and Society (physics.soc-ph) #Statistical Finance (q-fin.ST) #Statistical Mechanics and Entropy #physics.comp-ph #physics.soc-ph #q-fin.ST

paper · pdf · doi:10.48550/arxiv.physics/0602055

5 pages, 2 figures

arxiv created 2006/02/08 · openalex publication_date 2006/02/08 · arxiv updated 2009/12/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

Predicting absolute magnitude of fluctuations of price, even if their sign remains unknown, is important for risk analysis and for option prices. In the present work, we display our predictions about absolute magnitude of daily fluctuations of the Dow Jones Industrials Average (DJIA), utilizing the original theory of conservation of total energy, for the coming 500 days.

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