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

Quantum Physics 2026-05-14 v2 Data Analysis, Statistics and Probability

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%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.

Keywords

Cite

@article{arxiv.2602.13094,
  title  = {A Quantum Reservoir Computing Approach to Quantum Stock Movement Forecasting in Quantum-Invested Markets},
  author = {Wendy Otieno and Alexandre Zagoskin and Alexander G. Balanov and Juan Totero Gongora and Sergey E. Savel'ev},
  journal= {arXiv preprint arXiv:2602.13094},
  year   = {2026}
}

Comments

16 pages, 9 figures