Momentum or Acceleration in Markets ?

We often talk about Momentum as a factor but even Acceleration is an important factor in markets driven by quantum human behavioral forces.

Value

Value of something doesn't depend just on what is valued but also who values it ! Relativity of Value for an Observer !

Why Human wants to Predict ?

Why we want to predict ? Is prediction necessary for success ?No

Endogenous and Exogenous ( Inside could be Outside and Outside could be Inside) Relative ! Russell's Paradox

If I draw the Logic from Russell's Paradox, it would state that If A set lies outside the Set B, then it would like inside the Set B. The relevance is that "Inside/Internal and Outside/External" are not so separable and relatively existing ! 

What lies outside/external could actually be inside /internal and vice versa in real world as well..

Efficient Market Hypothesis: Mathematically Inconsistent!

Fooled by One's own Mind!

One is mostly fooled by one's own mind ! It seems !

Equilibrium and Inequilibrium Mean Revert in itself !

Just like things tend to mean revert to Equilibrium..Similarly, 

Equilibrium and Inequilibrium also tend to mean revert to each other in Complex real world..particularly in Human affairs...

Consciousness: Self-Referential issue !

The deeper problem is also possibly Self-Referential! To understand the consciousness, one needs to know oneself first ! 

Inconsistency/ Incompleteness of LLMs/ AI ?

Validators of LLMs..

Validators( Non-Deterministic) itself needs Validators! This also seems to be a Self-Referential issue 

Not to forget, Self-Referential issue is the deeply related to Godel's Incompleteness..

That also raises the fundamental question if LLMs would be self-consistent or complete ?

Recently I had written that this system of training -testing (followed by AI/ML? seems to suffer from another fundamental issue where even InSample, Out-sample selection could itself be actually InSample at higher level and biased !

 So, this whole system of Train-Test method used by AI/ML in general could also be fundamentally inconsistent/ incomplete!  That could also make AI/ML so !  

Secret of Happiness

The Secret of Happiness is - Don't think about Happiness! 😊

History : Biasness

History often tends to suffer from many biasness including survivorship bias ! 

Failures often deleted could be more informative than Success stories, yet the later is often covered..

Apart from the observed history, there also possibly exist unobserved history not often taken into account leading to misleading results at times...! Future is more likely Complex !  

Socio- Economic Paradox

Q : Why is this region economically so backward ?

A : Because people here think they are culturally and socially quite advanced !

Socio-Economic Paradox !

One is often fooled by one's own mind !

One often tends to be fooled by one's mind...

Happiness : Godel Incompleteness

There is no end, no matter how much of anything one gets,  there would always be more that can be achieved in absolute terms....there remains  absolute Incompleteness.

So, the ultimate happiness lies in completeness in Relativistic framework by adjusting one's reference framework relatively rather than trying to achieve more and more in absolute terms by keeping higher reference leading to unhappiness..

Gaussian Vs Fat Tailed : Psychological Perspective

People tend to use Gaussian over Fat Tailed also because of Psychological Perspective...despite knowing the risks..

Human behave strictly scientifically whether rational or irrational....

GeoEconomic Oscillatory Motion Between West and East over the time !

The Economic Power Centre keeps on oscillating between West and East over the time !  

Nature

Paradox of Prediction :

Paradox : Prediction that Predictions would hold true is itself Unpredictable/Random ! Unpredictable Predictions !

The more one predicts, the more Unpredictable it could become ! 

Beyond Momentum, Acceleration in Markets !

Everyone talks about momentum in market...I talk about acceleration in markets !!😊

Why do human minds tend to think linearly and avoid contradictions ?

Why do human minds tend to think linearly and avoid contradictions ? To resolve contradictions, as the nature of reality might be,  should  be seen in relative context..

.the tendency to think linearly and absolute way leads to such contradictions ! 

Law of Biological Energy Conservation

Relative Value of 0

Relative|0| can be 0,>0 or <0 depending on different scenarios

Humans as Natural Robots

I see Humans as Natural Robots with two eyes etc...! 

Paradox of Randomness

Life/ Real World appears random in forward direction of time, Deterministic backward ! 

Special theory of Relativity in Psychology

Special theory of relativity (psychology)-- Everyone tends to think that something has been told for them only as the center.

Happiness/Stress Adjusted GDP

GDP from Psychological Mindfulness of People Perspective:

Happiness/Stress Adjusted GDP or GDP Per Capita

From Bernoulli’s theory of Expected Utility Theory who had initially proposed “Value is absolute” centuries ago.

Nobel Laureate Legend Daniel Kahneman and Amos Tversky’s Prospect Theory proposed changes in the earlier proposition: “Value is Relative wrt Reference point that remains absolute such that Value (0)=0 for the Reference Point taken at outcome 0 ” . This Relative aspect of Value was revolutionary.

However, Kahneman himself acknowledged further improvement in that due to some conflict in some practical cases related to the assumption of the absolute Reference point at 0.

I have recently proposed “Relativistic Prospect Theory” as an extension of Kahneman and Tversky’s Prospect theory to address those fundamental limitations related to Value and Reference Point Relative Dynamics mentioned earlier in the Human Mind Behavioural Psychological Context – This is under discussions with relevant global experts of the field.

Reference Point is NOT absolute at outcome 0. Rather Even the Reference point keeps changing relatively dynamically in human mind psycho-scientifically. And Value v(0) for outcome 0 can have different values depending on Reference point k which has its dynamics rather than always static fixed at the outcome 0.

Value function for the Human Psychological Mind seems to follow the Ornstein Uhlenbeck type mean-reverting Stochastic process and even Reference point has own dynamics that also follow such mathematical process.

 Happiness is when V(x>k) >0 and Pain is when V(x<k) < 0 and V(k) = 0 for Reference point k where the Reference point keeps on changing relatively for a human mind observer...

d〖v(x)〗_t=a(b_t-〖v(x)〗_t )dt+σdW_t

b_tis the mean equilibrium level value of v(x)which is 0 where W_t is the Wiener process. Other symbols are the parameters. It reveals that Value does have some Randomness component too.

v(x>k)>0 denotes happiness /gain and

v(x<k)<0 denotes pain /loss.

v(x=k)=0 for the reference point k.

There have been many real-life practical examples to validate the above.

This also has Spiritual significance in that Happiness and Pain co-exist together and mean revert in the cycle. No matter what one achieves or loses in life, its value mean reverts to normal equilibrium value over time as the Reference Point keeps on changing in human mind behaviour psychologically to return to equilibrium least energy most stable Quantum behavioural energy state neurologically in human minds.

Hence, Scientifically and Mathematically, the Key to Happiness is to manage one’s reference point relative to one’s achievement (positive or negative )rather than increasing one’s reference point endlessly, which would cause pain no matter how much Absolute one achieves. Even Minds automatically adjust them passively and some conscious effort is also indeed at the individual active level.

This is also in Spiritual relevance where it’s often stated

संतोषम परम् सुखम।

This technically means to set one’s Reference point under check so as to generate Relative Value and Happiness even if achievement is constrained, or low. Relativity matters technically not absolute..So no matter how much one achieves even economically, financially in the absolute sense but if the Reference point is not kept under control, it would lead to discontent and pain!

So, based on our ancient Spiritual richness and heritage our focus should be to achieve GDP at higher Happiness /Lowest Stress level by managing one’s reference point. Unlike many economies particularly Capitalistic ones, that focus on maximizing GDP, it may not increase happiness levels if the Reference point not correct for its citizens’ psychological mind at local personal level.

Psychologically, Reference Point is Relatively decided having prominent component of people and ssurrounding around them comparatively. Happiness in human mind is psychologically wrt others in the surrounding also that helps in figuring out the Reference point for an observer human mind scientifically. As often generally said , one becomes the mean of 10 people surrounding them.

Hence Relative Equality in the vicinity matters a lot as that also plays prominent role in deciding Reference point in people’ minds at large in general.

Hence Happiness originating from Reference point comes from Value which is Relative wrt Reference point rather Absolute ..The point is Absolute Income ,GDP etc doesn’t necessarily increase Value and hence Happiness rather It’s relative !

So, one must focus on Relatively rather only Absolute increment of Income,GDP etc.. for overall Happiness of People in an economy... It seems the economies focus on maximize GDP more and more in absolute terms assuming absoluteness leads to Psychological Betterment of People linearly. But that might not be the case in reality always in technical sense.

In Financial Investment, it’s often focussed on Return- Risk e.g. Sharpe Ratio and other ratios but ultimately it comes to Investors’ emotional psychological well being too and that comes not necessarily from absolute high Return-Risk ratio but relatively and hence How much Stress has been involved in achieving that...Like Two same Risk-Return generated at different level of Stress/Happiness level would have different Values for a Human Human Mind Psychologically...

 Psychological mindfulness or investors is extremely important as Stress leads to so many health and life risks these days globally. It’s like Tail risk.

So, Stress Adjusted Risk-Return tries to figure out How much Stress has been taken to achieve a particular Risk-Return relatively. That’s ultimately important for overall behavioral mindfulness of stakeholders involved e.g. investors, people, fund managers etc.

Say for example : Stress Adjusted Share Ratio i.e. Sharpe Ratio generated per unit of Stress level relatively. So, if A generates say Stress Adjusted Sharpe Ratio of 3 while B is 2 so A is better than B other things being the same.

Similarly if A generates 20% return at higher stress level of say 5 units and B generates 20% level at stress level of say 10 units so, Stress Adjusted Return in the investment A is greater than B for an investor’s overall mindfulness.

(Stress Adjusted Risk-Return)SARR= (Risk-Adjusted Return( RR)e.g. Sharpe Ratio)/( Stress Level Scale Imvolved(S))

Similarly Stress Adjusted GDP (or Happiness Adjusted GDP) for an economy and similarly for GDP per capita

                   = GDP/(Stress or Happiness Level overall of people to achieve the above)

Similarly if let’s say there are two Economies A and B.

A has GDP of $ 10 trillion at Happiness Level of 20 and B has $ 10 trillion at Happiness level of 10 them overall Happiness Adjusted GDP for A is greater than that of B. It’s important because ultimately Higher absolute GDP of an economy doesn’t matter rather at what level of Happiness that GDP has been achieved matters ultimately for Psychological well-being of the people at large. Just like Income generated at higher stress levels doesn’t lead to overlap Happiness level of the people in the true sense.

In a nutshell, Higher Income, Higher Return, and Higher GDP don’t necessarily mean Higher Value in true sense and Higher Happiness level. As explained above, Value is technically a Relative concept having scientific psychological dynamics in human minds. So, ultimately Relative aspects matter wrt. Reference Point of People. So, People generally are more happy by relative superiority than absolute figures.

Hence how much equality exists in the vicinity has an important role in the psychological Reference point dynamics of human minds. So, the focus, in my humble scientific psychological behavioural view, is not just trying to maximize GDP but Happiness Adjusted GDP, ultimately that matters. It doesn’t matter if we achieve a huge absolute GDP and the Stress level of People extremely High i.e. Lowest Happiness Level. One can empirically see US or China, despite having the highest absolute GDPs or some countries having the highest GDP/Capita e.g. Luxembourg, Singapore, Norway, etc.. are not necessarily the Happiest Economies in the world. Lower/ Higher absolute GDP country or GDP/ Capita can have higher / lower Happiness Adjusted GDP or GDP/ Capita!

It’s quite important because Stress, Anxiety, etc. are becoming serious issues globally leading to possible disastrous health risks for humanity. It also has Spiritual Significance as our Holy Religious Scriptures teach us. So, many Spiritual teachings and principles do have in-depth Scientific principles behind them, brought to us by our great ancient sages. Though this is not the focus here but many Spiritual aspects are deeply scientific!

India/Bharat, our motherland, has a rich historical spiritual inclination, We should not blindly follow what other Capitalistic Economies try to blindly maximize absolute GDP or GDP Per Capita rather we must focus on Happiness Adjusted GDP for overall common people’s mindfulness well well-being aligned with our Spiritual Historical glory!

In fact it’s applicable to all the economies, companies, etc.. in general, and all should think that way. UN SDG seems to start focussing on them.

By the way, it’s important to mention the Happiness Score generating methodology by Gallup ,World Happiness Rating methodologies do have serious limitations from the Statistical point of view and some important psychological aspects are also seriously missing. This needs to be modified technically to measure the Happiness level in an economy in a prudent way. Statistical Sampling and tools and long-standing paradoxes have some fundamental issues that also affect the multi-trillion dollar investment domain as well as economic and social analysis. It has also been my ongoing research focus along with globally renowned collaborators in the field of Statistical data analysis in Financial /Economics Investment and Risk Management. There do exist some foundational limitations in conventional Statistical and Data methods. How some serious long-standing paradoxes can have serious implication issues in our real day-to-day life cases across the fields. That’s an in-depth area in itself to discuss.

So, concluding the brief description here, our focus must be on Stress /Happiness Adjusted GDP , GDP/Capita keeping alignment with Psycho Scientific dynamics of People’s mindfulness that is also aligned with the glorious Spiritual Principles of our economy and ultimately all the countries would come down to that hopefully.

Marhematics Stsristics Relative at deeper level wrt . reference frames../ observers ....Russell's paradox to Skolem Richard, Set, Infinity, Countability, Simpson's Paradox

History and Future : Education System Focus.

Almost many educational exams focus testing  on History but they should also focus on other new subject called Future..Learning History doesn't neces mean better analysis of Future. Though History is important, but real world is Complex and Future can be way different from History unpredictably at times..

Exams : Is the Process robust to Noise and Randomness ?! How to make it fair ?

Should exams like UPSC not be conducted few times for the sameset of students  to remove the noise factor ? This isnbeacsue say AIR 1 would have Randomness component too. Same X who secured AIR 1 in one trial could be AIR 100 in second trial. It has empirically happ ned that those qualified with top AIR in own year didn't even pass in the next chance. 

The point I mean that exams be conducted few times to select the candidates in noiseless random manner! ? It would likely be more fair but yes at some cost too ! 

Quantum Speed / Entanglement and Classical Speed of Light !

Speed of Light in theory of relativity by Einstein is basically speed limit that can't be violated but in quantum world things could be way faster leading to say interconnectedness , Entanglement etc.. but that's not a type of travelling rather nature of intrinsic geometry leading to entanglement and interconnectedness ! 

So, although quantum world space is different where nature of speed etc. is different from so called classical world nature of speed,  there quantum speed(which actually is not speed though interconnected) can be more than the speed of light but that definition of speed space is different from the classical world phenomenon of speed of light which remains unviolated !  

Such entanglement or interconnectedness doesn't require actually traveling like speed of light though that happens due to quantum structure of inbuilt super geometry where consciousness and the role of the observer is also deeply involved to establish the correlation ! Correlation could be highly misleading ... need to be careful though ! 

So communication ca be said to be faster than speed of light but that's without actually travelling something between them ! 

Practical Definition of God !

God can be practically defined as something unknown, beyond clear definition in words, human logic, understanding, that is essentially required to make the equation of the functioning of the universe complete and consistent in itself, hence which governs the human understanding, thinking and life too !   

P.S. This applies to this definition too! 

I bow to that God ! 🙏🙏

The deeper one understands science and mathematics, more one understands the role for God !

Ultimate Truth Doesn't Exist ? Unknowability of Ultimate Truth ? Proof of Existence of God !?

While everyone seems to reaching for the ultimate truth, there might not exist that absolute ultimate truth ! This is quite! possible! 

Unknowability of Truth ! 

That's true because in any strong formal logical system there would remain at least some truths that exist but unknown within that system and also undefined ! 

Hence that utopia of knowing the ultimate truth(which may not be properly defined technically !) is technically impossible in my view(of course, the same applies here too!)

This can possibly lead to the existence of God ! 

Beyond Causality and the notion of God

We relate the notion of  God with Causality but the notion of Causality itself could be debated as something could be beyond the logic of Causality...

Causality could be Paradoxical in Human Mind Logic..! 

Undefinability

There also exists undefinability..Certain things can't be always well defined.. 

Mathematical Limitations of Language ! 

Inconsistency or Incomplete in Day to Day Social /affairs ! Godel

Yes any Law/Constitution etc even in society, things becomes  genuinely Inconsistent or incomplete ...following form Godel Incompleteness in Logic and Mathematics! 

This is likely the Natural characteristics of the Universe ! Inconsistency and Incompleteness!

It can be evidenly seen in society,politics, laws everywhere..! 

Also a form of Simpson's paradox !!

Non-Linear Complex world..

Human Mind Behavior : Rational/Irrational or Scientific?

Human Mind may not seem to act rationally in social context  but they act very much scientifically! 

Relativity in Randomness- Determinism ! Asymmetry of Time Direction

Same thing that appears random initially may start appearing deterministic later ! For example things that appear random in forward time direction may start appearing deterministic while looking backward in hindsight.  That's why historical analysis misses of performance analysis could be misleading in factor analysis in real life.

There exists some relativity in Randomness and determinism. 

Self Referential Issue in Logic in Day to Day life !

Will someone  actually apply power  against themselves in the great interests ? 

Say Lawmakers making laws against their own comfort ? Or anyone for that matter 

Who will amend amendment laws itself in the Constitution ? 

Self- Reference since Godel Incompleteness is quite important everywhere even in day to day life.

The System must have sound answe to such questions to avoid Inconsistency or incompleteness.

Skin in the game in Law

There should be Skin in the Game in Serious Cases : Means those who complain against someone will have some punishment if that is found false later on ! This would likely  discourage false cases by someone. 

Human Nature and AI Sub AI...Infinite loop...

Human is Nature's AI. In future AI would create sub AI ..this would go on endlessly ! Likely so..may be ! 

Human Vs AI & Biases : Godel

Human Trains AI/ML which itself has biases and subotimality in decision analysis ,hence leading to biased in AI/ML. 

So to remove biases in AI/ML is thenlike self cyclical - Trainer(Human)  trains  Machine(Trainee) and then Trainee(Machine) trains Trainer(Human)...Self Cyclical- Self Referential leading to Inconsistency & Incompleteness as in Godel Incompleteness ! 

Thinking about Opposites Thinking ! Duality

I am more interested how people minds produce two contradictory realities rather than showing which one is true in any deep philosophical argument or discussion as both could be true relatively. It's not absolute ! 

Human Behavior: Uncertainty vs Certainty

People often look forward to Certainty that often go suboptimal  against their own best interests ! Embracing Uncertainty could lead to better result over time contrary to certainty ! The path of Uncertainty is aligned with the Path of Nature 

Universe How Old : Absurd Question ?

The whole concept of How old Universe is nothing but illusion of mind that frames such questions and answers...

Human mind mistake is to observe Universe from its perspective.

The sense of time and age itself is illusion to human mind ! There is no end no beginning...Time is illusion to mind ...also Space 

Hence the question of how old universe is illusionary question and just superficial fabricated question of human mind...

Is the value of Pi constant over time ?

The Ratio of circumference and diameter of a circle called Pi could be changing over time.

 Why not ? 

Unknowability of the Universe by itself !

Does Universe know about itself completely ,let's forget humans !

Human Mind Mathematics

By Pankaj Mani

Manipankaj9@gmail.com

I humbly think the way mathematics is understood conventionally requires deep shift. Infact I have already tried to resolve some of the foundational paradoxes in mathematics by making mathematics time human and relativistic rather the assumption of absolute independent of human. I think Time ,Relativity ,Human do have essential role in mathematics evolution over time, though it’s quite slow compared to physics . Infact for the application in finance, economics ,human behavioral, new mathematics is being developed because the fundamental assumptions of these conventional mathematics like calculus, statistics etc. are practically fundamentally incompatible in modelling human world. Conventional Mathematics seems to be mostly in classical world but human behavior is sort of quantum world.

But before that, for the entire philosophical discussion of human and mathematics including of Platonism and Non Platonism etc. I think one needs to understand first what is Human mind /Consciousness first i.e. The Observer.

Without understanding the observer, the argument about the observed is seemingly incomplete !

Even the Platonist thoughts like Mathematical Reality existing independent of Human was also produced by Plato’s biological human mind only !

What is is meant by the word “independent” is also very ambiguous at times.Platonic approach seems Paradoxical in itself while in his Theory of forms, forms are not well defined, well acknowledged by himself.

Platonic approach : On one hand he talked that Mathematical Realities exist beyond Physical Tangible world in the abstract world independent of human but can be accessed by only human mind intellect. I mean how can something independent of human can be accessed and understood well by human mind itself unless the both are deeply interlinked and dependent on each other ! For that one needs to understand first human mind itself. That’s why the essential role of Consciousness. Without understanding that in detail humankind will always be arguing and fighting over these opposing thoughts which is true. Mathematics may superficially appear independent of one specific human but not collective humans.

On one hand it talks about mathematical reality beyond physical materialistic world and on the other hand Platonists try to explain the physical materialistic world based on that only !

I personally see so far it’s Paradoxical . Mathematics could be Independent and dependent both how an observer’s mind looks at it !

I have also tried to show how Mathematics is also Time and human Dependent to try to resolve foundational paradoxes and it gets significantly.

When these things are understood deeply one can possibly realize that Mathematical Realities may not be independent of human mind. Infact while dealing at the scale of Infinity like in Infinite series and all, the role of human becomes quite significant how one tweaks the rule.

Mathematics has many components some seemingly natural like Pythagoras theorem , some humanly created like numbers etc.. Even Naturally existing realities like Pythagoras theorem etc are based on intrinsic physicalities, symmetrical aspects. I see mathematical realities like geometry too something following the fundamental characteristics of Physical Nature /Universe we live in. It’s mutually both ways. That’s why many features of physical and human behavioral world like randomness, entropy, symmetricity, asymmetricity etc. exist even in mathematical realities for example Numbers their distribution etc..say Prime Number Distribution and their behavior etc..

These empirical evidences strongly seems to convince me that natural mathematical realities, physical realities , human realities all are interlinked with each other..The difference between all of them seems to be due to illusion of consciousness. After all from where the logic behind the fundamental formal axioms that come that define mathematical systems, they come from human physical world analysis.. and then the same mathematics is applied to study physics ! So it’s like one type of physics trying to explain another physics !

But yes all Mathematics is not Naturally existing ,some areas are humanly created as well like complex numbers. And even Randomly created mathematical system will also have some inherent patterns because the logic and principles on which human define new mathematical are also based on physical realities experience and human behavior etc.

The very concept of Numbers etc. I do believe that exists on Human Mind. When someone asks how many Natural Numbers exist...My answer would be rather how much one can count up to or imagine upto rather than absolute infinite. This seemingly Platonist belief that Infinite number exists is possibly the root cause . Mathematicians need to first understand human mind in my humble view.

And at the deeper level when we study the properties of Numbers ,we do see their behavioral similarity to human mind neurological behavior and also physical world behavior ..For example there exist properties like mean reversion, randomness, entropy etc. even in mathematical numbers that can be found everywhere including human and physical world. Even the geometrical structure of human is mathematical.. How Ramanujan's mind or intuition in the mind know mathematical discovery if they are independent. How does mind establish truth or not about mathematics if they are independent. How does mind know the external truth about mathematical or physical realities if they are independent? 

At the same time, there lies fundamental friction between Mathematics and physics which is also one of the foundational causes of renormalization type issue though it’s another matter than it has become useful just like complex numbers which was created to hide Inconsistency in the algebra. This is also very important issue to understand that even if one randomly creates a mathematical system and tries to calibrate into real world situation through physical experiment , one may always get some predictions correct out of many , but that doesn’t guarantee its validity in principle. This forceful calibration technique in finance and economics has even bankrupted many large funds globally including top class banks. The solution is possibly deeper than what we think.

The problem is to check the fundamental incompatibility in the existing mathematical system that is like a framework to model physics. Mathematics has to be made real world especially in the context of managing infinity. Like Real Numbers ..can be infinitely divisible but in physical world and atom may not be infinitely divisible. Or say mathematical theory of Set believe in simultaneous existence of its elements but Simultaneity in Relativistic Physics is different. So, over the time Physics has changed from classical to quantum etc..but Mathematicians still prefer to remain in Platonic timeless existence due to strong mental inertia or say classical world .

As in Feynman diagram or otherwise why charge of an electron or mass should depend superficially on the inconsistent mathematical measurement having numeric value. Numbers can always be manipulate by choosing different reference points. At closer to 0 distance Mathematically it becomes infinite based on arithmetic rules but physically it is not Infinite. The point is for real world application mathematics as the frame needs to be made real world by redefinition rather than applying the same inconsistent system. As that’s done it would suffice the purpose for sometime but this fundamental issue would always pop up in future unless the fundamental system is changed and revised how physics is done and how mathematics can be made real world. That’s the reason I am skeptic about Renormalization etc. because fundamentally the very concept of Infinity is dubiously understood in both mathematics and physics!

If one goes deeply one can find the dubiously Uncertainty in mathematics itself while dealing with Infinity like Ramanujan Summation, Abel Summation also linked with the celebrated Riemann Zeta function ; These Infinite convergence methods are also applied in Renormalization techniques e.g. Casimir effect.etc in QFT. So many Non Renormalized theories are discarded just because of such issues . So I see like in finance and economics a mathematical system is first defined and then calibrated with physical results in biased ways to fit and then claimed to be working perfectly ! That’s the reason mathematical models in economics finance remain badly performing. So, as Renormalization has come a long way since Wilson time, one should continue that but I humbly believe there is need to look at the foundation as well so that future discrepancy/Inconsistency doesn’t occur in some other unexpected forms.

Mathematics itself has its own intrinsic physics. It also has randomness, entropy etc That’s different from the normal real-world tangible physics subject. Mathematics itself is foundationally incomplete or Inconsistent in Godel Incompleteness context so when reference frame itself has such issues how far physical world realities modelled on that can be consistent or complete. I doubt. This has been raised by even likes of Stephen Hawking and others. Even some randomly created mathematics may be forcefully calibrated to fit in the reality.

Bertrand Russell told : Physics is Mathematical not because we know too much. Infact we know so little that only its mathematical properties we can discover.

So I don’t seem to see the application of Mathematics Science some what mysterious rather obvious as far as they are able to do, of course there are many unsuccessful applications too.

In a nutshell I humbly believe there is serious need to study and understand the philosophy where science and mathematics and others are going because in this current technological age the Philosophy of Artificial Intelligence etc . also seems to be misguided significantly trying to mimic human using mathematics without understanding mathematics and human mind deeply!

I humbly think we need to come out of mechanical system where Philosophy is treated in bad manner .,Infact as I read somewhere in Ph.D. (Doctor of Philosophy) the essential component of Philosophy seems to be missing these days and the geodesic of science, mathematics etc. Seem to be misguided affecting the day to day society.

Self Referential Issue AI checking AI itself

Will AI be able to check the difference between AI(self) and Real images ? Is it not Self-Referential issue Fundamentally in Godel context ? 

I think so as of now that this might not be consistently possible ! That may change later as we go ahead...

Speed Light Changes over time

Yes Speed of Light Changes over time and even Time has Space . Some mathematical issues with Special Relativity Theory by Einstein. 

I wrote this in 2005 to Prof. Deepak Dhar(Padma Bhushan awardee and Boltzman Medalist) at TIFR way back then now at IISER Pune. 

Circular Problem and Self-Referential issues in a Democratic Set up

Self -Referential Paradox .

This has seemingly serious practical implications for laws, constitution and democracy as well.

Some Questions : 

Paradox of Self Amendment: Who will amend the amendment clause itself ? 

Practically speaking :

Will Elected Representatives pass laws by against themselves in the interest of nation if required ?

Will Bureaucrats act against themselves if required ?

Will Judges pass judgement against themselves if required ?

Or even People support something against themselevs in the interest of nation 

Or anyone for that matter.

This is related to very important foundational Paradoxical issues in logic for centuries. 

To resolve these fundamental issues, there should be the appropriate provisions.

Stress Adjusted Risk-Return : Quantum Human Behavioral Metrics

Stress Adjusted Rate of Return

Pankaj Mani

Looking into account the Quantum Human Behavioral Psychological aspects into the Classical Metrics of Risk, there is need for a New Metric that truly measures the Risk-Return Figure of Investment.

Human Behavior and Psychology are extremely important aspects how an investor feels happiness out of his investment and must incorporate the stress level involved in the current age. Unfortuantely, those are not taken into account in the conventional system of investment world. Human well being is often ignored while trying to maximize the highest risk-adjusted return.We can see why this is important from Nobel Laureates e.g. Daniel Kahneman, Angus Deaton and my own research works on Psychology in Real Human Behavior.

Conventional metrics of simply calculating Risk-Return in the absolute classical way for all, needs to be modified as the Perspective of Risk-Return is a Quantum Phenomenon for different Investors Relatively. In the classical definitions of Risk-Return, the hidden Quantum Human Behavioral Stress Level is often ignored but that’s extremely important for happiness level of an investor at biological mind level.

Keeping into view these different aspects of investment, which are practically very significant, we propose new Quantum Behavioral Metrics of Risk that maximizes the happiness level of an investor by achieving risk-return while managing the hidden stress level to achieve that..

We believe that in order to maintain a healthy balance between risk-return and the mindfulness happiness of an investor, stress factor is extremely important that must be taken into account. This has scientific reason because just having more and more risk-adjusted return may not bring overall maximization of happiness and mindfulness to an investor’s quantum mind because of the hidden aspects like stress, feeling of pain, anxiety..

Hence, based on the above practical points, we propose a new simple Metric that should be maximized while making investments whether in financial markets or otherwise in life rather than just the Numerator part as often conventionally done..

SARR : Stress Adjusted Risk-Return =

Risk-Return Achieved / Stress Level to achieve that Risk-Return.

SARR should be calculated for different choices Relatively not Absolutely as done in Relative Valuation Approach to make better decision making.Stress Level Numbers can be assigned relatively to different choices for quantitative analysis.

Nature of Risk , Quantum Vs Classical

What is Risk ? Risk is Uncertainty...which is the fundamental characteristics of Nature hence market..So, it would always remain in some forms..one or the other...can't be completely removed....! Also, it's quantum depending on individual observer rather absolute for all classically as usually done...

The Sense of "We" vs "I" !

The Plural Conscious Sense of "We" as simultaneously existing is itself delusional...

"I" and "You" are not absolutely both possibly. existing ! "Others" exist in my world realtively..rather than all exist in one absolute world

Hence to use "I" rather than "We" technically. The use of "We" inherently assumes the absolute world for all !!

Prove first that Proof Exist !

In Mathematics, at deeper level, what is also quite important before proving something is to first check the inherent assumption that everything is provable--

Hence try to prove first why a certain problem is provable in the system rather than just starting to prove the problem...

Godel had shattered the the utopian dream of proving everything in mathematics.... ! 

Ramanujan to Riemann to Financial Markets

Ramanujan to Riemann to Financial Markets ! The Hidden Peculiar Deep Connections !

 

By Pankaj Mani

9th Jan 2024

The Celebrated famous Identity by Indian Legend Ramanujan Summation in Mathematics having wide deep applications across the fields. This is one of the most important mysteries of science.

Sum of all the Natural Numbers upto infinity

1+2+3+4+........♾️(Infinity)= -1/12

The above peculiar identity is deeply linked with the Celebrated Riemann Zeta Function(named after legend German mathematician Bernhard Riemann and the correspondingly, the most important unsolved problem in pure mathematics Riemann Hypothesis for around one and half centuries. This Ramanujan Summation has crucial applications in Quantum Field Theory etc.. Physics as well. Riemann Zeta Function is also interestingly involved in Option Pricing

And more importantly here, this Riemann Zeta Function linked to the Ramanujan’s famous identity is also deeply linked to the Brownian Motion, the Foundational Infrastructure of Mathematical (Quant) Finance !

Such is the intriguing depth and beauty of Financial Markets-Number connection involving trillions of dollars of quant investments globally ! It also leads to the introspection how Mathematics and Human Sense of the world we live in, are also deeply linked ! One needs to explore how? !

References:

1)https://www.nytimes.com/2014/02/04/science/in-the-end-it-all-adds-up-to.html

2)https://onlinelibrary.wiley.com/doi/10.1111/1467-9965.00035

Pricing of Options : Broadie, Glasserman and Kou 1997)

3)https://link.springer.com/chapter/10.1007/978-3-0348-8954-4_2

Lord Ram - Science Connection

The idea of Lord Ram(irrespective of questiong the existence),any other forms of God and their holy greatness attached expands positive energies all around as in ESG, it exemplifies cordidal relationship, sacrifice, etc.  for all. It's quite scientific that such spiritual energy produces quantum forces in mind  that prevents people psychologically from doing wrong, maintain good ,benevolent relationship with each other in family or otherwise, that creates a conducting enviornment for the development of the nation which is like fractal geometry made of individuals.

But yes, such powerful positive energy has to be supportive to work not become superstitious beyond a point that's the caution one has to take ! 

Ramanujan to Riemann to Finance !

Ramanujan to Riemann to Financial Markets ! The Hidden Peculiar Deep Connections !

The Celebrated famous Identity Ramanujan Summation in Mathematics having wide deep applications across the fields.

Sum of all the Natural Numbers....

1+2+3+4+........♾️(Infinity)= -1/12 

The above peculiar identity is deeply linked with the Celebrated Riemann Zeta Function and the correspondingly, the most important unsolved problem in pure mathematics Riemann Hypothesis for around one and half centuries. This Ramanujan Summation has crucial applications in Quantum Field Theory etc..Physics as well.

And more importantly here, this Riemann Zeta Function linked to the Ramanujan's famous identity is also deeply linked to the Brownian Motion, the Foundational Infrastructure of Mathematical (Quant) Finance ! 

Such is the intriguing depth of Financial Markets- Number connection involving trillions of dollars of investments globally !!