Dear Roshan,

I am interested in the Econophysics question of how entropy is related to financial performance in the markets and indices and starting with my theoretical PhD thesis at NYU's Economics Dept. Mallick (1993), I have along with my collaborators worked on this performance at various stages. For e.g. I have developed the concept of "optimal entropy" or "market realised entropy" (Mallick, Hamburger & Mallick (2016, 2017, 2018)) in proving the P vs. NP problem of Quantum Mathematical Sciences, which can satisfy the Shannon measure of entropy applicable to information sciences or more general stock and flow concepts of energy flow for e.g. However, I donot know exactly how you have related Entropy to financial performance or market or corporate risk exposures for e.g.. However, all I can tell you is that it is possible to do that provided there are Econophysicists measuring performance in and outside the organisation. But I donot know whether a linear weighted index like you suggest can be done. Why don't you try and see whether your measurement is correlated with the Colombo Stock Exchange index for e.g.

S.K.Mallick

for S.K.Mallick, N. Hamburger, S.Mallick

Obviously this score is defined through the selection of C_i and how the entropy method is done. In trivial case, if we use a single C_i (e.g. ROA), this is just a performance score through ROA, which is surely do-able and also useful in some performance analysis. The question whether you "can" do what you suggested depends heavily on what your goal actually is.

Soumitra K Mallick Thank you.