IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF APPLIED SCIENCES AND MATHEMATICAL THEORY (IJASMT )

E- ISSN 2489-009X
P- ISSN 2695-1908
VOL. 10 NO. 4 2024
DOI: 10.56201/ijasmt.v10.no4.2024.pg63.87

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A Fractional Calculus Approach to Modeling the Rehabilitation Dynamics of Stock Markets

Silas Abahia Ihedioha, Chinedu Bright Okechukwu, Onyekachi P. Ogwo, Chigozie Chibuisi, Bright Okore Osu

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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.

keywords:

Fractional calculus, fractional differential equations, stock market dynamics, healing

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