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We introduce two quantum algorithms to compute the Value at Risk (VaR) and Conditional Value at Risk (CVaR) of financial derivatives using quantum computers: the first by applying existing ideas from quantum risk analysis to derivative…

Quantum Physics · Physics 2024-04-17 Nikitas Stamatopoulos , B. David Clader , Stefan Woerner , William J. Zeng

Simulating the dynamics and the non-equilibrium steady state of an open quantum system are hard computational tasks on conventional computers. For the simulation of the time evolution, several efficient quantum algorithms have recently been…

Quantum Physics · Physics 2021-02-24 Nathan Ramusat , Vincenzo Savona

We present an efficient quantum algorithm for estimating Gauss sums over finite fields and finite rings. This is a natural problem as the description of a Gauss sum can be done without reference to a black box function. With a reduction…

Quantum Physics · Physics 2007-05-23 Wim van Dam , Gadiel Seroussi

To see the feasibility of a large-scale quantum computing, it is required to accurately analyze the performance and the quantum resource. However, most of the analysis reported so far have focused on the statistical examination, i.e.,…

Quantum Physics · Physics 2020-05-20 Yongsoo Hwang , Taewan Kim , Chungheon Baek , Byung-Soo Choi

Quantum-classical hybrid algorithms are emerging as promising candidates for near-term practical applications of quantum information processors in a wide variety of fields ranging from chemistry to physics and materials science. We report…

A milestone in the field of quantum computing will be solving problems in quantum chemistry and materials faster than state-of-the-art classical methods. The current understanding is that achieving quantum advantage in this area will…

Quantum Physics · Physics 2023-11-08 Guoming Wang , Daniel Stilck França , Ruizhe Zhang , Shuchen Zhu , Peter D. Johnson

Much progress has been made in the field of quantum computing using continuous variables over the last couple of years. This includes the generation of extremely large entangled cluster states (10,000 modes, in fact) as well as a fault…

Quantum Physics · Physics 2015-12-23 Kevin Marshall , Raphael Pooser , George Siopsis , Christian Weedbrook

The method is introduced for fast data processing by reducing the probability amplitudes of undesirable elements. The algorithm has a mathematical description and circuit implementation on a quantum processor. The idea is to make a quick…

Quantum Physics · Physics 2025-04-24 Karina Zakharova , Artem Chernikov , Sergey Sysoev

We generalize the Approximate Quantum Compiling algorithm into a new method for CNOT-depth reduction, which is apt to process wide target quantum circuits. Combining this method with state-of-the-art techniques for error mitigation and…

We propose a hybrid quantum-classical algorithm, originated from quantum chemistry, to price European and Asian options in the Black-Scholes model. Our approach is based on the equivalence between the pricing partial differential equation…

Computational Finance · Quantitative Finance 2021-02-08 Filipe Fontanela , Antoine Jacquier , Mugad Oumgari

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

We present an end-to-end pipeline for large-scale portfolio selection with cardinality constraints and experimentally demonstrate it on trapped-ion quantum processors using hardware-aware decomposition. Building on RMT-based…

This paper proposes a method of quantum Monte Carlo integration that retains the full quadratic quantum advantage, without requiring any arithmetic or quantum phase estimation to be performed on the quantum computer. No previous proposal…

Quantum Physics · Physics 2022-10-05 Steven Herbert

Stochastic algorithms are among the best for solving computationally hard search and reasoning problems. The runtime of such procedures is characterized by a random variable. Different algorithms give rise to different probability…

Artificial Intelligence · Computer Science 2013-02-08 Carla P. Gomes , Bart Selman

Monte Carlo integration approximates an integral of a black-box function by taking the average of many evaluations (i.e., samples) of the function (integrand). For $N$ queries of the integrand, Monte Carlo integration achieves the…

Quantum Physics · Physics 2020-04-27 N. H. Shimada , Toshiya Hachisuka

We propose a novel portfolio selection approach that manages to ease some of the problems that characterise standard expected utility maximisation. The optimal portfolio is no longer defined as the extremum of a suitably chosen utility…

Condensed Matter · Physics 2009-09-29 P. Rossi , M. Tavoni , F. Cocco , R. Marschinski

This paper presents a quantum algorithm for efficiently computing partial sums and specific weighted partial sums of quantum state amplitudes. Computation of partial sums has important applications, including numerical integration,…

Quantum Physics · Physics 2025-07-15 Alok Shukla , Prakash Vedula

Quantum computers are not yet up to the task of providing computational advantages for practical stochastic diffusion models commonly used by financial analysts. In this paper we introduce a class of stochastic processes that are both…

Quantum Physics · Physics 2023-11-03 Eric Ghysels , Jack Morgan , Hamed Mohammadbagherpoor

The first quantum computers are expected to perform well at quadratic optimisation problems. In this paper a quadratic problem in finance is taken, the Portfolio Optimisation problem. Here, a set of assets is chosen for investment, such…

Portfolio Management · Quantitative Finance 2020-12-03 Frank Phillipson , Harshil Singh Bhatia

Efficient simulation of quantum computers is essential for the development and validation of near-term quantum devices and the research on quantum algorithms. Up to date, two main approaches to simulation were in use, based on either full…

Computational Complexity · Computer Science 2020-05-06 Roman Schutski , Danil Lykov , Ivan Oseledets
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