The Right Balance? Using A Quantum Annealing Computer For Your Portfolio

Chicago Quantum have recently been publishing some interesting results, e.g. “ Portfolio Optimization of 40 Stocks Using the D-Wave Quantum Annealer ”. They’ve investigated the use of quantum computers for building a portfolio out of a universe of US listed, liquid equities that contains an optimal set of stocks. Starting from historical market data, they examined formulations on the D-Wave 2000Q System (DWave) to find optimal risk vs return portfolios; an optimized portfolio based on the Markowitz formulation and the Sharpe ratio, a simplified Chicago Quantum Ratio (CQR), then a new Chicago Quantum Net Score (CQNS). Their results show that practitioners can use a DWave to select attractive portfolios out of up to 60 US liquid equities.  This webinar will examine what may well be the earliest actual quantum computing application in finance since Z/Yen first looked at the implications of quantum computing back in 1998, The Potential Impact Of Quantum Computing , and the formation of the Quantum Computing in Europe Pathfinder Project for the European Commission with Charles T Ross. There will an opportunity to get a feel for the quantum computer ‘rig’ being used. The webinar will also discuss the performance outcomes of two of the portfolios, and speculate at what point we should expect to see quantum advantage in stock picking. Speaker:  Jeffrey Cohen is an executive IT strategy management consultant. Classically educated in finance, economics and management sciences. Jeff has spent his career leading and growing IT infrastructure consulting and project businesses (largest had $447M sales globally). Jeff has changed tack and spent the past two years building a start-up in quantum computing consulting. Jeff has deep skills across the IT consulting domain, including in sales, sales management, technical pre-sales, service delivery, creating solutions, portfolio management, and analyst relations. His industry experience is deepest in financial services, but he is comfortable supporting the intersection of finance and IT infrastructure across industries and geographies. For example, Jeffrey co-led the North American Outsourcing and Offshoring practice in the McKinsey & Company BTO. Jeff’s work grows IT consultancies, typically in new areas of market innovation. He started in IT infrastructure, then moved to hybrid cloud, and is now focused on quantum computing. On a personal note, Jeffrey is involved in politics and after holding the office of Precinct Committeeman, is up for election for North Shore Water Reclamation District Trustee in Lake County, Illinois in November 2020. Jeff has a BA economics from the University of Chicago, an MM management & strategy, Finance from Northwestern University, and completed coursework towards a Ph.D. in management sciences from Illinois Institute of Technology.