Quantum inspired qubit qutrit neural networks for real time financial forecasting

arXiv cs.AI / 4/22/2026

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Key Points

  • The study evaluates machine learning approaches for stock prediction by comparing classical ANNs with quantum-inspired Qubit (QQBN) and Qutrit (QQTN) neural networks.
  • All evaluated models achieve robust accuracy above 70%, but the Quantum Qutrit-based Neural Network (QQTN) delivers superior results overall.
  • QQTN shows clear advantages in risk-adjusted performance (via higher Sharpe ratio), steadier prediction quality (via improved Information Coefficient), and robustness across different market conditions.
  • The paper reports that QQTN can reach comparable performance to the strongest baselines while requiring significantly less training time, improving suitability for real-time forecasting.
  • The authors conclude that quantum-inspired Qutrit neural networks are promising for practical finance use cases that demand low-latency, efficient computation.

Abstract

This research investigates the performance and efficacy of machine learning models in stock prediction, comparing Artificial Neural Networks (ANNs), Quantum Qubit-based Neural Networks (QQBNs), and Quantum Qutrit-based Neural Networks (QQTNs). By outlining methodologies, architectures, and training procedures, the study highlights significant differences in training times and performance metrics across models. While all models demonstrate robust accuracies above 70%, the Quantum Qutrit-based Neural Network consistently outperforms with advantages in risk-adjusted returns, measured by the Sharpe ratio, greater consistency in prediction quality through the Information Coefficient, and enhanced robustness under varying market conditions. The QQTN not only surpasses its classical and qubit-based counterparts in multiple quantitative and qualitative metrics but also achieves comparable performance with significantly reduced training times. These results showcase the promising prospects of Quantum Qutrit-based Neural Networks in practical financial applications, where real-time processing is critical. By achieving superior accuracy, efficiency, and adaptability, the proposed models underscore the transformative potential of quantum-inspired approaches, paving the way for their integration into computationally intensive fields.