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Related papers: Prospects and challenges of quantum finance

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Quantum computing has the potential to revolutionize multiple fields by solving complex problems that can not be solved in reasonable time with current classical computers. Nevertheless, the development of quantum computers is still in its…

Recent advancements in quantum computing are leading to an era of practical utility, enabling the tackling of increasingly complex problems. The goal of this era is to leverage quantum computing to solve real-world problems in fields such…

Quantum Physics · Physics 2025-05-07 Eneko Osaba , Esther Villar-Rodriguez , Izaskun Oregi

For the first time in history, we are seeing a branching point in computing paradigms with the emergence of quantum processing units (QPUs). Extracting the full potential of computation and realizing quantum algorithms with a…

Quantum Physics · Physics 2022-11-29 Sergey Bravyi , Oliver Dial , Jay M. Gambetta , Dario Gil , Zaira Nazario

An enduring challenge in computer science is reducing the runtime required to solve computational problems. Quantum computing has attracted significant attention due to its potential to deliver asymptotically faster solutions to certain…

Quantum Physics · Physics 2025-03-25 Mischa P. Woods

As we begin to reach the limits of classical computing, quantum computing has emerged as a technology that has captured the imagination of the scientific world. While for many years, the ability to execute quantum algorithms was only a…

Quantum Physics · Physics 2020-11-12 Bela Bauer , Sergey Bravyi , Mario Motta , Garnet Kin-Lic Chan

Quantum computing is an emerging technology with potentially far-reaching implications for national prosperity and security. Understanding the timeframes over which economic benefits and national security risks may manifest themselves is…

Most continuous mathematical formulations arising in science and engineering can only be solved numerically and therefore approximately. We shall always assume that we're dealing with a numerical approximation to the solution. There are two…

Quantum Physics · Physics 2007-12-10 A. Papageorgiou , J. F. Traub

Quantum algorithms have the potential to enhance machine learning across a variety of domains and applications. In this work, we show how quantum machine learning can be used to improve financial forecasting. First, we use classical and…

Statistical Finance · Quantitative Finance 2024-04-05 Sohum Thakkar , Skander Kazdaghli , Natansh Mathur , Iordanis Kerenidis , André J. Ferreira-Martins , Samurai Brito

Quantum computing technology is advancing rapidly. Yet, even accounting for these trends, a quantum leap would be needed for quantum computers to meaningfully impact deep learning over the coming decade or two. We arrive at this conclusion…

Quantum Physics · Physics 2025-11-04 Hans Gundlach , Hrvoje Kukina , Jayson Lynch , Neil Thompson

We use the benefits and components of classical computers every day. However, there are many types of problems which, as they grow in size, their computational complexity grows larger than classical computers will ever be able to solve.…

Finance is one of the promising field for industrial application of quantum computing. In particular, quantum algorithms for calculation of risk measures such as the value at risk and the conditional value at risk of a credit portfolio have…

Quantum Physics · Physics 2022-01-28 Koichi Miyamoto

In this paper, we introduce a quantum-enhanced algorithm for simulation-based optimization. Simulation-based optimization seeks to optimize an objective function that is computationally expensive to evaluate exactly, and thus, is…

Quantum Physics · Physics 2021-03-08 Julien Gacon , Christa Zoufal , Stefan Woerner

Recently, increased computational power and data availability, as well as algorithmic advances, have led machine learning techniques to impressive results in regression, classification, data-generation and reinforcement learning tasks.…

It is known that quantum computers can speed up Monte Carlo simulation compared to classical counterparts. There are already some proposals of application of the quantum algorithm to practical problems, including quantitative finance. In…

Quantum Physics · Physics 2020-09-02 Koichi Miyamoto , Kenji Shiohara

We present and analyze a quantum algorithm to estimate credit risk more efficiently than Monte Carlo simulations can do on classical computers. More precisely, we estimate the economic capital requirement, i.e. the difference between the…

Quantum Physics · Physics 2019-07-09 Daniel J. Egger , Ricardo Gacía Gutiérrez , Jordi Cahué Mestre , Stefan Woerner

Quantum computers promise to surpass the most powerful classical supercomputers when it comes to solving many critically important practical problems, such as pharmaceutical and fertilizer design, supply chain and traffic optimization, or…

Computation · Statistics 2022-04-05 Anna Lopatnikova , Minh-Ngoc Tran , Scott A. Sisson

Within this decade, quantum computers are predicted to outperform conventional computers in terms of processing power and have a disruptive effect on a variety of business sectors. It is predicted that the financial sector would be one of…

Quantum Physics · Physics 2023-03-10 Prateek Jain , Alberto Garcia Garcia

Monte Carlo (MC) simulations are widely used in financial risk management, from estimating value-at-risk (VaR) to pricing over-the-counter derivatives. However, they come at a significant computational cost due to the number of scenarios…

Quantum Physics · Physics 2024-04-10 Titos Matsakos , Stuart Nield

GPU computing has become popular in computational finance and many financial institutions are moving their CPU based applications to the GPU platform. Since most Monte Carlo algorithms are embarrassingly parallel, they benefit greatly from…

Computational Finance · Quantitative Finance 2014-08-26 Linlin Xu , Giray Ökten

Quantum computing promises to tackle technological and industrial problems insurmountable for classical computers. However, today's quantum computers still have limited demonstrable functionality, and it is expected that scaling up to…