Multiverse Computing, a Spanish-based Deep-Tech company developing Quantum Software, has launched the newest version of Singularity Portfolio Optimization (v 1.2). The new product includes the Multiverse Hybrid Solver that combines the strength of classical and quantum computing and is specifically suited to portfolio optimization problems.
The Multiverse Hybrid Solver can optimize massive portfolios with thousands of assets, identifying the portfolio with the maximum returns for a given level of risk and delivering results of the same caliber as those produced by industry-standard solvers faster. The Singularity Portfolio Optimization Excel plug-in has been continuously evolving, according to John Malcolm, the Financial Engineer in charge of Singularity Portfolio Optimization at Multiverse.
“This latest version of Singularity provides a quantum-based solution to a simple case portfolio optimization which is competitive against classical approaches currently used in industry,” “Exciting new developments on our roadmap will extend the applicability of this product to cover more exotic cases of portfolio optimization, which classical approaches struggle with.”
john Malcolm.
The Singularity Portfolio Optimization Excel plug-in now offers three solvers:
- The Multiverse Hybrid recommended for the best results
- The D-Wave Leap Hybrid
- A classical solver meant for benchmarking purposes for advanced users.
The tool is created to help portfolio managers achieve the best possible balance between risk and return among the various assets under consideration while sticking to the minimum and maximum allocations per asset following the investor’s preferences. The Portfolio Optimization software is built on a general optimization framework with much broader relevance to any industry where optimization is crucial, including aerospace, manufacturing, health, and energy. The target market is large financial institutions, including banks, hedge funds, pension funds, and insurance firms.
With the release, users can now:
- Set the investor’s risk aversion level to influence the portfolio’s risk-reward balance.
- Set the resolution to alternate between extremely discrete and quasi-continuous asset allocation.
- Decide whether to set global maximum allocations across all assets or investment bands to restrict the minimum and maximum investment in each asset.
- Become familiar with the user-friendly interface that integrates with Microsoft Excel.
They can also create a portfolio from scratch or enhance an existing one using the Singularity Portfolio Optimization plug-in. It helps make frequent performance improvements or create medium to long-term strategies.