English
Related papers

Related papers: Towards practical Quantum Credit Risk Analysis

200 papers

The efficient and effective construction of portfolios that adhere to real-world constraints is a challenging optimization task in finance. We investigate a concrete representation of the problem with a focus on design proposals of an…

We present a quantum circuit optimization technique that takes into account the variability in error rates that is inherent across present day noisy quantum computing platforms. This method can be run post qubit routing or post-compilation,…

Quantum Physics · Physics 2023-03-22 Paul D. Nation , Matthew Treinish

Quantitative trading is an integral part of financial markets with high calculation speed requirements, while no quantum algorithms have been introduced into this field yet. We propose quantum algorithms for high-frequency statistical…

Quantum Physics · Physics 2022-08-24 Xi-Ning Zhuang , Zhao-Yun Chen , Yu-Chun Wu , Guo-Ping Guo

A standard approach to quantum computing is based on the idea of promoting a classically simulable and fault-tolerant set of operations to a universal set by the addition of `magic' quantum states. In this context, we develop a general…

Quantum Physics · Physics 2022-04-12 Matteo Lostaglio , Alessandro Ciani

This article outlines our point of view regarding the applicability, state-of-the-art, and potential of quantum computing for problems in finance. We provide an introduction to quantum computing as well as a survey on problem classes in…

Portfolio optimization plays a central role in finance to obtain optimal portfolio allocations that aim to achieve certain investment goals. Over the years, many works have investigated different variants of portfolio optimization.…

Quantum Physics · Physics 2023-02-01 Debbie Lim , Patrick Rebentrost

Estimating the covariance of asset returns, i.e., the risk model, is a key component of financial portfolio construction and evaluation. Most risk modeling approaches produce a factor model that decomposes the asset variability into two…

Quantum-enhanced (i.e., higher performance by quantum effects than any classical methods) mean value estimation of observables is a fundamental task in various quantum technologies; in particular, it is an essential subroutine in quantum…

Quantum Physics · Physics 2024-09-11 Kaito Wada , Kazuma Fukuchi , Naoki Yamamoto

Quantum devices can process data in a fundamentally different way than classical computers. To leverage this potential, many algorithms require the aid of a quantum Random Access Memory (QRAM), i.e. a module capable of efficiently loading…

Quantum Physics · Physics 2025-03-26 Francesco Cesa , Hannes Bernien , Hannes Pichler

Quantum computers must meet extremely stringent qualitative and quantitative requirements on their qubits in order to solve real-life problems. Quantum circuit fragmentation techniques divide a large quantum circuit into a number of…

Quantum Physics · Physics 2024-06-25 Saikat Basu , Arnav Das , Amit Saha , Amlan Chakrabarti , Susmita Sur-Kolay

Estimating correctly the quantum phase of a physical system is a central problem in quantum parameter estimation theory due to its wide range of applications from quantum metrology to cryptography. Ideally, the optimal quantum estimator is…

Quantum Physics · Physics 2021-06-09 Marco A. Rodríguez-García , Isaac Pérez Castillo , P. Barberis-Blostein

Quantum entanglement enables exponential computational states, while superposition provides inherent parallelism. Consequently, quantum circuits are theoretically capable of supporting large scale parallel computation. However, applying…

Quantum Physics · Physics 2025-08-01 Yu-Ting Kao , Yeong-Jar Chang , Ying-Wei Tseng

Quantum computing (QC) is anticipated to provide a speedup over classical HPC approaches for specific problems in optimization, simulation, and machine learning. With the advances in quantum computing toward practical applications, the need…

Quantum Physics · Physics 2022-10-26 Jernej Rudi Finžgar , Philipp Ross , Leonhard Hölscher , Johannes Klepsch , Andre Luckow

Applications such as simulating complicated quantum systems or solving large-scale linear algebra problems are very challenging for classical computers due to the extremely high computational cost. Quantum computers promise a solution,…

Quantum principal component analysis (QPCA) ignited a new development toward quantum machine learning algorithms. Initially showcasing as an active way for analyzing a quantum system using the quantum state itself, QPCA also found potential…

Quantum Physics · Physics 2025-01-15 Nhat A. Nghiem

Uncertainty quantification is becoming increasingly important in image segmentation, especially for high-stakes applications like medical imaging. While conformal risk control generalizes conformal prediction beyond standard miscoverage to…

Machine Learning · Computer Science 2025-04-11 Rui Luo , Zhixin Zhou

Integer factorization remains a significant challenge for classical computers and is fundamental to the security of RSA encryption. Adiabatic quantum algorithms present a promising solution, yet their practical implementation is limited by…

Quantum Physics · Physics 2025-05-23 Tianlai Yang , Mo Xiong , Ming Xue , Xinwei Li , Jinbin Li

Quantum computing will change the way we tackle certain problems. It promises to dramatically speed-up many chemical, financial, and machine-learning applications. However, to capitalize on those promises, complex design flows composed of…

Quantum Physics · Physics 2020-10-28 Lukas Burgholzer , Robert Wille

Currency arbitrage leverages price discrepancies in currency exchange rates across different currency pairs to gain risk-free profits. It involves multiple trading, where short-lived price discrepancies require real-time, high-speed…

Quantum Physics · Physics 2025-11-03 Suman Kumar Roy , Rahul Rana , M Girish Chandra , Nishant Kumar , Manoj Nambiar

Financial derivative pricing is a significant challenge in finance, involving the valuation of instruments like options based on underlying assets. While some cases have simple solutions, many require complex classical computational methods…

Computational Finance · Quantitative Finance 2025-05-15 Robert Scriba , Yuying Li , Jingbo B Wang