An Innovative Quantum-Inspired Hybrid Strategy and In-Depth Analysis of Cross-Market Portfolio Optimization

With the growing popularity of online trading platforms, investors can consider investing in the global market without regard to their geographical location. This study analyzes the investment performance of Group of Seven (G7) members, who greatly influence the global economy and stock market. Regardless of the market in which they invest, investors seek long-term and stable gains in the stock market; therefore, investing in a risk diversification option is paramount. By constructing a portfolio, investment risk can be decreased. The relationship between return and risk is crucial. In this study, the proposed intelligent investing system with a novel trend ratio indicator aids in constructing an efficient portfolio. In a volatile stock market, the daily ups and downs are all profit opportunities; therefore, the proposed intelligent system constructs long-selling and short-selling portfolios. This study expands the investment discussion market to the G7 market and combines trading strategies into an innovative hybrid trading strategy to evaluate the G7 market's overall performance. As the trading strategies and markets under consideration are more inclusive, the proposed quantum-inspired algorithm with the entanglement technique can address the vast portfolio construction solution space. This study generalizes trend ratios in long-selling and short-selling portfolios and G7 markets. The experiment's result reveals that the hybrid strategy can increase portfolio profitability and efficiency.