Quantum uncertainty conjecture for portfolio risk and returns
Let and denote the standard deviations of portfolio risk and returns, respectively, as defined in modern portfolio theory. Let be a lower bound influenced by quantum-mechanical principles, potentially depending on Planck's constant through . Quantum risk-return uncertainty conjecture. The product of these standard deviations should satisfy
The proposed bound is motivated by an analogy with the Heisenberg uncertainty principle and is expected to be determined by the ground state of the measurement system under adiabatic conditions via the Schrödinger equation. Its validity and the precise dependence of on are not established.
References
Primary source
Pablo Thomassin, Guillaume Guerard, Sonia Djebali and Vincent Marc Lambert, “A Quantum Model for Constrained Markowitz Modern Portfolio Using Slack Variables to Process Mixed-Binary Optimization under QAOA”, arXiv:2601.03278 (2025).
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