IDEAS home Printed from
   My bibliography  Save this paper

Crossing Stocks and the Positive Grassmannian I: The Geometry behind Stock Market


  • Ovidiu Racorean


It seems to be very unlikely that all relevant information in the stock market could be fully encoded in a geometrical shape. Still,the present paper will reveal the geometry behind the stock market transactions. The prices of market index (DJIA) stock components are arranged in ascending order from the smallest one in the left to the highest in the right. In such arrangement, as stock prices changes due to daily market quotations, it could be noticed that the price of a certain stock get over /under the price of a neighbor stock. These stocks are crossing. Arranged this way, the diagram of successive stock crossings is nothing else than a permutation diagram. From this point on the financial and combinatorial concepts are netted together to build a bridge connecting the stock market to a beautiful geometrical object that will be called stock market polytope. The stock market polytope is associated with the remarkable structure of positive Grassmannian . This procedure makes all the relevant information about the stock market encoded in the geometrical shape of the stock market polytope more readable.

Suggested Citation

  • Ovidiu Racorean, 2014. "Crossing Stocks and the Positive Grassmannian I: The Geometry behind Stock Market," Papers 1402.1281,, revised Feb 2014.
  • Handle: RePEc:arx:papers:1402.1281

    Download full text from publisher

    File URL:
    File Function: Latest version
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Ovidiu Racorean, 2015. "Quantum Gates and Quantum Circuits of Stock Portfolio," Papers 1507.02310,, revised Jul 2015.
    2. Ovidiu Racorean, 2014. "Braided and Knotted Stocks in the Stock Market: Anticipating the flash crashes," Papers 1404.6637,, revised Jun 2014.
    3. Ovidiu Racorean, 2014. "Decoding Stock Market Behavior with the Topological Quantum Computer," Papers 1406.3531,

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1402.1281. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (arXiv administrators). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.