HessQ Bulletin 1 - Quantum Harmonic Oscillator & Market Volatility

This record presents a technical article titled "Case 1 – Quantum Harmonic Oscillator & Market Volatility" developed by HessQ Technologies. The article introduces a novel financial market model based on the quantum harmonic oscillator (QHO) framework, exploring volatility cycles as transitions between discrete risk states and offering a physics-inspired probabilistic scoring methodology for market volatility forecasting. It discusses coherent and squeezed quantum states as analogues to calm and stressed market regimes and incorporates damping, forcing, and resonance effects relevant to real-world financial markets. Calibration, performance metrics, and financial engineering perspectives are also presented. The model’s potential advantages over traditional GARCH/ARIMA approaches are addressed, and practical implications for quantitative trading teams and analysts are highlighted. The document is intended for researchers, quantitative finance professionals, and applied mathematicians interested in novel approaches to market volatility modeling using quantum-inspired techniques.