A Quantum Reservoir Computing Approach to Quantum Stock Movement Forecasting in Quantum-Invested Markets

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Authors: Wendy Otieno, Alexandre M. Zagoskin, Alexander G. Balanov, Juan Sebastian Totero Gongora, Sergey E. Savel'ev
Cited by: 0

Abstract

We present a quantum reservoir computing (QRC) framework based on a small-scale quantum system comprising at most six interacting qubits, designed for nonlinear financial time-series forecasting. We apply the model to predict future daily closing trading volumes of 20 quantum-sector publicly traded companies over the period from April 11, 2020, to April 11, 2025, as well as minute-by-minute trading volumes during out-of-market hours on July 7, 2025. Our analysis identifies optimal reservoir parameters that yield stock trend (up/down) classification accuracies exceeding $86 \%$. Importantly, the QRC model is platform-agnostic and can be realized across diverse physical implementations of qubits, including superconducting circuits and trapped ions. These results demonstrate the expressive power and robustness of small-scale quantum reservoirs for modeling complex temporal correlations in financial data, highlighting their potential applicability to real-world forecasting tasks on near-term quantum hardware.

Fields of Study & Subjects

Neural Networks and Reservoir Computing Stock Market Forecasting Methods Quantum Computing Algorithms and Architecture

Publication details

Journal / source
arXiv (Cornell University)
Publication date
13 February 2026
Language
EN
Document type
Preprint