Quantum Computing-based System for Portfolio Optimization

This document is a technical report that presents a quantum computing-based system designed for portfolio optimization, referred to as Q4FuturePOP. The system aims to address the portfolio optimization problem (POP) by utilizing future asset value predictions instead of relying solely on historical data. The report outlines the innovative aspects of Q4FuturePOP, including its automatic universe reduction module, which is intended to simplify the complexity of the optimization problem. The document details the structure of the system, which consists of three interconnected modules: the Predicted Dataset Generation (PDG), the Assets Universe Reduction Module (AUR), and the Quantum Computing Solver Module (QCS). It explains how the PDG generates a dataset of projected future values, while the AUR intelligently narrows down the asset universe to enhance computational efficiency. The report also discusses preliminary performance evaluations of the system's modules, providing insights into their operational effectiveness in optimizing asset allocation to maximize returns and minimize risk.