English

Financial Risk Management on a Neutral Atom Quantum Processor

Quantum Physics 2024-04-04 v2 Strongly Correlated Electrons Computational Engineering, Finance, and Science Machine Learning

Abstract

Machine Learning models capable of handling the large datasets collected in the financial world can often become black boxes expensive to run. The quantum computing paradigm suggests new optimization techniques, that combined with classical algorithms, may deliver competitive, faster and more interpretable models. In this work we propose a quantum-enhanced machine learning solution for the prediction of credit rating downgrades, also known as fallen-angels forecasting in the financial risk management field. We implement this solution on a neutral atom Quantum Processing Unit with up to 60 qubits on a real-life dataset. We report competitive performances against the state-of-the-art Random Forest benchmark whilst our model achieves better interpretability and comparable training times. We examine how to improve performance in the near-term validating our ideas with Tensor Networks-based numerical simulations.

Keywords

Cite

@article{arxiv.2212.03223,
  title  = {Financial Risk Management on a Neutral Atom Quantum Processor},
  author = {Lucas Leclerc and Luis Ortiz-Guitierrez and Sebastian Grijalva and Boris Albrecht and Julia R. K. Cline and Vincent E. Elfving and Adrien Signoles and Loïc Henriet and Gianni Del Bimbo and Usman Ayub Sheikh and Maitree Shah and Luc Andrea and Faysal Ishtiaq and Andoni Duarte and Samuel Mugel and Irene Caceres and Michel Kurek and Roman Orus and Achraf Seddik and Oumaima Hammammi and Hacene Isselnane and Didier M'tamon},
  journal= {arXiv preprint arXiv:2212.03223},
  year   = {2024}
}

Comments

17 pages, 11 figures, 2 tables, revised version

R2 v1 2026-06-28T07:24:01.719Z