Nomura takes quantum step in stock market forecasting

Nomura takes quantum step in stock market forecasting

Nomura is to launch a joint research project with Tohoku University to test the applicability of quantum computing in stock market forecasting.

Nomura's interest in the giant number crunching capacity of quantum computers comes as traditional Big Iron struggles to respond at speed to the vast volumes of market moving data required to form an optimal investment strategy.

In collaboration with Tohoku University associate professor Masayuki Ozeki, Nomura intends to test-run to the performance of the D-Wave machine, a quantum computer manufactured by Canadabased company D-Wave Systems, on a mixed bag of big data, from stock market fundamentals to economic reports and social media outputs.

In a statement, the Japanese firm says its aim is to test the extent to which the machine increases the efficiency and accuracy of calculations.

States the firm: "Nomura will take advantage of the computing speed of the D-Wave machine to select an optimal mix of stocks to enhance the performance of clients’ investment portfolios. It will also be used to make predictions on future stock prices. Nomura will also look into the potential of quantum computing technology for other areas of the firm’s business."

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