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 diversification

Financial portfolio diversification is crucial for investors who want to minimize risk and maximize returns. Diversification involves investing in various assets, including stocks, bonds, and other securities, to spread the risk across different markets, sectors, and asset classes. One of the main benefits of financial portfolio diversification is risk reduction. By investing in various assets, investors can avoid the risk of putting all their eggs in one basket. If one asset class or sector performs poorly, other asset classes may perform well, helping to offset losses. For example, if a portfolio is heavily invested in stocks and the stock market crashes, the portfolio’s value may decline significantly. However, if the portfolio also includes bonds, commodities, and real estate, the stock value decline may be offset by gains in other asset classes.

Another benefit of financial portfolio diversification is potential returns. Investing...