Book Image

Financial Modeling Using Quantum Computing

By : Anshul Saxena, Javier Mancilla, Iraitz Montalban, Christophe Pere
5 (1)
Book Image

Financial Modeling Using Quantum Computing

5 (1)
By: Anshul Saxena, Javier Mancilla, Iraitz Montalban, Christophe Pere

Overview of this book

Quantum computing has the potential to revolutionize the computing paradigm. By integrating quantum algorithms with artificial intelligence and machine learning, we can harness the power of qubits to deliver comprehensive and optimized solutions for intricate financial problems. This book offers step-by-step guidance on using various quantum algorithm frameworks within a Python environment, enabling you to tackle business challenges in finance. With the use of contrasting solutions from well-known Python libraries with quantum algorithms, you’ll discover the advantages of the quantum approach. Focusing on clarity, the authors expertly present complex quantum algorithms in a straightforward, yet comprehensive way. Throughout the book, you'll become adept at working with simple programs illustrating quantum computing principles. Gradually, you'll progress to more sophisticated programs and algorithms that harness the full power of quantum computing. By the end of this book, you’ll be able to design, implement and run your own quantum computing programs to turbocharge your financial modelling.
Table of Contents (16 chapters)
1
Part 1: Basic Applications of Quantum Computing in Finance
5
Part 2: Advanced Applications of Quantum Computing in Finance
10
Part 3: Upcoming Quantum Scenario

Financial portfolio management

A financial portfolio refers to a collection of assets, including stocks, bonds, and other securities, that an individual or entity invests in to generate a return on investment. Creating a diversified financial portfolio is crucial for investors to minimize risk and maximize returns. A financial portfolio requires careful analysis, market research, and risk assessment.

One of the essential aspects of creating a financial portfolio is diversification. Diversification refers to investing in different types of securities to spread the risk. This strategy aims to reduce the impact of any negative events on the portfolio’s overall performance. For example, a portfolio entirely invested in a single stock or industry may suffer significantly if the company or industry faces challenges. However, a diversified portfolio that includes stocks, bonds, and other securities can help mitigate such risks. Another important factor to consider when building...