APPLYING FRACTIONAL CALCULUS TO MODEL STOCK MARKET RECOVERY PATTERNS

Authors

  • Samuel Chukwudi Eze Department of Mathematics, Plateau State University, Bokkos, Plateau State, Nigeria

Keywords:

Fractional calculus, fractional differential equations, stock market dynamics, healing dynamics, financial modeling, Caputo derivative

Abstract

The dynamics of stock markets often exhibit complex behaviors that traditional models struggle to capture, particularly in recovery phases following periods of volatility. This paper introduces a novel mathematical model based on fractional calculus to describe and predict the rehabilitation dynamics of stock markets. We formulate a fractional differential equation (FDE) model and validate its effectiveness using historical market data. The model's ability to account for long-term memory effects and non-local interactions offers significant advantages over classical approaches

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Published

2025-02-26

Issue

Vol. 11 No. 1 (2023)

Section

Articles