Chicago Quantum Releases Report on Investigation of Quantum Computers for Building Optimal Portfolio of 60 US Listed, Liquid Equities
(ChicagoQuantum) Chicago Quantum hosts a series of articles on its Medium site that discusses the group’s efforts in researching the use of quantum computers in the financial industry. Readers interested in the use of quantum computing startup for quantum financial portfolio optimization will want to spend time reviewing the site here Medium Site.
Recently, Chicago Quantum investigated the use of quantum computers for building an optimal portfolio out of a universe of 60 U.S. listed, liquid equities. Starting from historical market data, Chicago Quantum applied their unique problem formulation on the D-Wave Systems Inc. D-Wave 2000QTMquantum annealing system (hereafter called D-Wave) to find the optimal risk vs return port-folio. We approach this first classically, then using the D-Wave, to select efficient buy and hold portfolios. The results show that practitioners can use either classical or quantum annealing methods to select attractive portfolios. This builds upon Chicago Quantum’s prior work on optimization of 40 stocks.
Chicago Quantum’s work is inspired by the notion that we can find attractive investment port-folios from a universe of US equities leveraging a quantum computer. As we scale the problem with the number of equities analyzed (portfolio choices are2n), we investigate whether quantum annealing can scale up vs. classical methods and select a reasonable sized grouping of attractive portfolios, as opposed to just one ideal solution.
The 19-page comprehensive report can be accessed by clicking here.