Non- Euclidean Financial Space-Time for the Financial Trajectory of Firms
Bhis Idea had come to my mind way back in 2010. But due to lack of very much acknowledgement, had to drop but that’s very important in itself. Though it was very much in my mind throughout.
Non- Eulcidean Metric Space particularly Riemannian Metric space was used by Albert Einstein in General Relativity where planets travel geodesic in the curved space-time. In that Space-time, Black Hole being the Singularity point.
Imaginatively, similar Space-Time exists in the Financial and Economic Space-time where multiple causal factors are the constituent dimensions e.g. External and Internal Factors like GDP , Profit, Inflation ,Supply Demand etc. The Financial Trajectory of any firm including Bankruptcy,traces Geodesic in that Non- Euclidean / Riemannnian Economic/Financial Space Time as General Relativity in Physics proposed by Albert Einstein !
So, for that Financial Trajectory of a firm’s value is covering a Geodesic Trajectory in that Non-Euclidean Manifold. That’s actually the possible Physics of Financial world which can be applied to figure out the trajectory of various financial variables of a firm
By Pankaj Mani,CQF,FRM,
AIFI@NYU Tandon
Head of CQF (India)Delhi Society
Global Association of Risk Professionals (GARP)- India (Delhi) Chapter,
MD, RealWorldRisk
New Delhi, India
(manipankaj9@gmail.com)
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