APPLYING FRACTIONAL CALCULUS TO MODEL STOCK MARKET RECOVERY PATTERNS

By: Samuel Chukwudi Eze Published: February 26, 2025

Abstract

<p>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</p>

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