Chicago Quantum (SM) publishes article on using quantum computers to build stock portfolios

  • A Yahoo Finance stock performance chart that matches the timeline of the research behind the article.  It shows the two stocks chosen during this run of the model.Jeffrey Cohen

    A Yahoo Finance stock performance chart that matches the timeline of the research behind the article. It shows the two stocks chosen during this run of the model.Jeffrey Cohen

 
Jeffrey Cohen
Updated 11/6/2020 10:57 AM

Chicago Quantum (SM) published an academic article to arXiv on November 6, 2020 titled "Picking Efficient Portfolios from 3,171 US Common Stocks with New Quantum and Classical Solvers."

It was written by Highland Park resident Jeffrey Cohen and Evanston resident Clark Alexander. Jeff is the President of Chicago Quantum and Clark Alexander is a Senior Associate.

 

In this article, we analyze 3,171 US common stocks to create an efficient portfolio based on the Chicago Quantum Net Score (CQNS) and portfolio optimization. We begin with classical solvers and incorporate quantum annealing. We add a simulated bifurcator as a new classical solver and the new D-Wave Advantage(TM) quantum annealing computer as our new quantum solver.

The model finds stocks that when put together reduce the volatility of the portfolio. In other words, some stocks zig while others zag, providing overall market returns with reduced risk. You can see that happening in our attached figure.

Why is this an important research accomplishment? The team uses a unique formulation to allow quantum computers to analyze stocks (up to 134 at a time). The team also analyzes 3,171 stocks at one time, which is a search space of 10 ^ 954 portfolios, and finds attractive portfolios.

This local team is available for consultation on the use of quantum computing in commercial businesses. Clients can also leverage their quantum computing and classical platform for large-scale data analytics and portfolio optimization.

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The article subjects are Quantum Physics (quant-ph); Portfolio Management (q-fin.PM), and it is cited as arXiv:2011.01308 [quant-ph].

This article can be found on Research Gate here: https://bit.ly/3171Stocks, or here: https://www.researchgate.net/publication/345261850_Picking_Efficient_Portfolios_from_3171_US_Common_Stocks_with_New_Quantum_and_Classical_Solvers

For more information on how Chicago Quantum(SM) uses classical and quantum computers to pick stock portfolios, please visit our website: https://www.chicagoquantum.com/portfolio.html#/

Jeffrey Cohen

President, Chicago Quantum

jeffrey@quantum-usaci.com

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