Quantum Computing is Arriving – Qubit by Qubit, and Commercial Applications Are About to Explode
Serikat is already positioning itself for this new era. Its R&D+i Laboratory is working on optimizing investment portfolios using quantum computing.
Last December, the CDTI (Centre for Industrial Technological Development), part of Spain’s Ministry of Science and Innovation, approved our research project on portfolio optimization using quantum computing.
The project aims to configure three investment portfolios in funds, tailored to three investor profiles based on risk: conservative, moderate, and aggressive.
The goal is to optimize portfolio composition to maximize the ratio of expected return to expected volatility. Volatility measures the frequency and intensity of asset price changes and is commonly used to quantify risk.
The project will use technology that is still in its early stages but promises to be truly disruptive: quantum computing. The result will be an algorithm that determines the percentage of money to allocate to each investment fund based on the fund’s performance as well as macroeconomic market indicators. Indicators under consideration include inflation, the Producer Price Index, the VIX for the U.S., among others.
We are carrying out the project with two partners: Welzia, an investment fund manager, as our business partner, and Tecnalia, a technology research center, as our tech partner.
By leveraging phenomena in the subatomic world described by quantum mechanics, quantum computers will solve problems that current supercomputers cannot. Technology giants such as Google, Microsoft, and IBM are racing to create increasingly powerful and stable quantum computers. Globally, the strongest bets are being made by China and the U.S., in that order.
