by David from The Future of Everything on (#6Y5AA)
Q-variance refers to the property, described previously in QEF14, that the expected variance of log returns x, corrected for drift, over a period T follows to good approximation the formula V(z)=^2+z^2/2 where z=xT. Q-variance follows because we model price change over a period as the displacement of a quantum harmonic oscillator (here we are not [...]