Quantum Portfolio Optimization and Risk Analytics Platform

Overview

A research-oriented financial analytics platform that combines classical portfolio optimization techniques with quantum computing approaches using Qiskit.

The platform enables users to:

• Optimize stock portfolios using Modern Portfolio Theory
• Visualize the Efficient Frontier
• Perform Monte Carlo portfolio forecasting
• Calculate Value-at-Risk (VaR) and Conditional VaR (CVaR)
• Analyze Maximum Drawdown
• Compare Classical and Quantum portfolio optimization approaches
• Benchmark runtime scalability across different portfolio sizes

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Features

Classical Finance Analytics

• Markowitz Portfolio Optimization
• Efficient Frontier Generation
• Portfolio Allocation Analysis
• Sharpe Ratio Optimization

Risk Analytics

• Monte Carlo Simulation
• Value-at-Risk (VaR)
• Conditional Value-at-Risk (CVaR)
• Maximum Drawdown Analysis

Quantum Finance

• QUBO Formulation
• QAOA-based Portfolio Selection
• Quantum vs Classical Benchmarking
• Runtime Scaling Analysis

Interactive Dashboard

• Streamlit User Interface
• Portfolio Visualizations
• Risk Distribution Charts
• Benchmarking Graphs

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Technology Stack

• Python
• Streamlit
• Qiskit
• NumPy
• Pandas
• SciPy
• Plotly
• Yahoo Finance API (yfinance)

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Research Results

Runtime Scaling

Assets	Classical Runtime	Quantum Runtime
4	0.0063 s	2.4783 s
6	0.0068 s	3.6259 s
8	0.0177 s	30.9840 s
10	0.0222 s	1108.6096 s

Key Observation

Quantum optimization simulations become significantly more computationally expensive as portfolio size increases, highlighting the challenges of simulating quantum algorithms on classical hardware.

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Project Structure

Quantum-Portfolio-Optimization-Platform/
│
├── app.py
├── requirements.txt
│
├── src/
│   ├── data_fetcher.py
│   ├── optimizer.py
│   ├── portfolio_metrics.py
│   ├── monte_carlo.py
│   ├── quantum_optimizer.py
│   ├── benchmark.py
│   ├── scalability.py
│   └── visualizer.py
│
└── README.md

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Future Work

• IBM Quantum Hardware Execution
• Advanced Portfolio Constraints
• Real-Time Market Data Integration
• Automated Research Report Generation
• Multi-Objective Portfolio Optimization

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Author

Sambhav Jha

Electronics and Communication Engineering (ECE)

Quantum Computing | FPGA Design | Embedded Systems | Financial Analytics