Quantifying Uncertainty: Potential Medical Applications of the Heston Model of Financial Stochastic Volatility

Abstract

The Heston Model, widely used in financial markets to characterize stochastic volatility, could potentially be useful in accounting for the impact of volatility in the broad field of medicine. This theoretical article highlights the potential uses of the Heston Model to quantify volatility in healthcare, focusing on epidemiology and pharmacology. Conceptually, the ability of the model to quantify unpredictability could provide insight into complex medical processes with variable variability. Rigorous testing would be required to determine the feasibility and validity of applying a financial model to biological processes. Nonetheless, the hypothetical connections between financial market volatility and volatility in medicine merit further exploration. This theoretical article explores a broad overview of possible applications of the Heston Model to the medical field.