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Financial Modeling Using Quantum Computing
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According to the Global Industry Classification Standard (GICS), the global asset management industry’s total assets under management (AUM) value at the end of 2020 was approximately $91.7 trillion, managed across 84,000 firms. This consists of the AUM managed by investment firms, pension funds, insurance companies, and other international financial institutions. Frequently, asset managers utilize portfolio management techniques to manage these assets. Investopedia defines portfolio management as follows:
Portfolio management is the art and science of selecting and supervising a portfolio to achieve a specific investment goal for the investor’s benefit.
This chapter will explore the art of portfolio management using machine learning techniques and quantum algorithms. It is divided into five sections: