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arXiv:2602.13094

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

Wendy Otieno, Alexandre Zagoskin, Alexander G. Balanov, Juan Totero Gongora, Sergey E. Savel'ev

quant-phphysics.data-anSubmitted Feb 13, 2026• Announced Feb 16, 2026• 0 citations
v1 · Feb 13, 2026v2 · May 13, 2026
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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.

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16 pages, 9 figures

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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%86 \%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.
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 prices of 20 quantum-sector publicly traded companies over the period from April 11, 2020, to April 11, 2025 (exclusive), as well as minute-by-minute trading prices 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.
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This research work introduces a novel quantum computing approach to stock price forecasting that leverages the power of quantum algorithms for enhanced predictive accuracy and risk management. This comprehensive framework that integrates Quantum Neural Networks (QNN), Quantum Support Vector Machines (QSVM), and Quantum Amplitude Estimation (QAE) to create a robust prediction system capable of navigating complex market dynamics. This approach goes beyond traditional quantum machine learning by incorporating specialized components for stop loss optimization and false breakout detection-critical elements for practical trading systems that are often overlooked in theoretical models. Experimental results across multiple market sectors during the 2018-2022 period demonstrates that this quantum-based framework achieves a 23.6% improvement in directional accuracy and a 31.4% enhancement in risk-adjusted returns compared to classical machine learning benchmarks. The model exhibits particular strength during high volatility periods, where quantum superposition and entanglement properties efficiently capture complex market patterns that elude classical algorithms. This research bridges the gap between theoretical quantum computing advantages and practical financial applications, offering significant implications for the future of algorithmic trading as quantum hardware continues to advance.
Forecasting neural activity from short recordings remains a fundamental challenge. Reservoir computing may offer an efficient paradigm for temporal prediction, however classical reservoirs typically underperform in small-data regimes. Here we investigate whether quantum reservoir computing (QRC) can help overcome this limitation. Building on recent advances, we introduce a quantum reservoir based on a transverse-field Ising model, combined with heterogeneous quantum measurements and polynomial ridge regression. On a standard benchmark task, results show that the quantum reservoir outperforms a classical counterpart overall, with prediction accuracy strongly dependent on reservoir parameters. We further demonstrate feasibility by running the same task on quantum hardware. To assess performance on biological signals, we evaluate QRC on simulated human electroencephalography (EEG) data with a parallel reservoir architecture. On this challenging task, the tested quantum reservoir did not match the performance of the classical one, but it produced stable, convergent predictions. This is a meaningful first step toward forecasting of biologically realistic neural data using a quantum reservoir. Overall, our findings indicate that although current quantum hardware and parallel reservoir architectures do not yet surpass classical methods on complex neural signals, QRC can be executed on near-term devices and does converge with realistic EEG-like data. This work establishes a practical baseline for future algorithmic and hardware developments aimed at clinical time-series forecasting with quantum systems.