QRC-4-ESP Research Breakthrough: Quantum Computing Shows Promise for Stock Market Forecasting
A new research paper led by Dr Wendy Otieno of Loughborough University, a researcher involved in the QRC-4-ESP project, demonstrates the exciting potential of quantum reservoir computing (QRC) for predicting stock market prices and trends.
Published in the scientific journal EPJ Quantum Technology, the paper, entitled “A quantum reservoir computing approach to quantum stock price forecasting in technology-markets”, presents an innovative approach to financial forecasting using quantum systems containing just one to six interacting qubits.
🔬 Key research findings include:
📊 Over 85% accuracy in predicting whether stock prices would rise or fall for 21 companies using reservoirs with two or more qubits.
⚛️ Demonstration that small-scale quantum systems can capture complex patterns in financial data.
💻 Competitive performance against conventional and quantum-inspired machine-learning approaches.
🌍 Potential applications across different quantum computing hardware platforms, including superconducting qubits and trapped ions.
The research analysed historical stock market data from companies including IBM, Microsoft, NVIDIA, IonQ and Rigetti Computing, highlighting the potential of QRC for tackling complex real-world forecasting challenges.
👏 Congratulations to lead author Dr Wendy Otieno and her co-authors Alexandre Zagoskin, Alexander G. Balanov, Juan Totero Gongora and Sergey E. Savel’ev on this exciting contribution to quantum computing research!
🇪🇺🇬🇧 This research received funding from the European Union and UK Research and Innovation (UKRI) under the QRC-4-ESP project, supporting the development of quantum reservoir computing technologies and their practical applications.
📖 Read the open-access publication:
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