Quantum-Inspired Optimization for Real-Time Portfolio Management in Volatile Financial Markets

Abstract

It is difficult to practice portfolio management in financial markets due to dynamic changes in the value of stocks and other financial securities. Conventional portfolio optimisation techniques may be too slow or ineffective in managing risks when there are highly volatile market situations. So to address this problem, this study suggests an optimisation method based on quantum theory.  The proposed system uses quantum-inspired techniques for improving decision making, optimizing investment and managing risk associated with investment decisions and management of portfolio in volatile markets. The model studies historical data as well as current trends in the financial market to discover profitable portfolio strategies. Factors like returns, volatilities, and diversification are taken into consideration for optimise investments and reducing risks. With the help of this model, suitable assets can be selected while reducing risks for investment. The results reveal that this system provides stability in portfolios, along with improving return and better risk management. The framework proposed by this research can be helpful for intelligent financial systems and portfolio optimization tools in a volatile financial market environment.