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Deep generative models are becoming increasingly used as tools for financial analysis. However, it is unclear how these models will influence financial markets, especially when they infer financial value in a semi-autonomous way. In this…
In a financial market, for agents with long investment horizons or at times of severe market stress, it is often changes in the asset price that act as the trigger for transactions or shifts in investment position. This suggests the use of…
Simulation tasks are insightful tools to compare information-theoretic resources. Considering a generalization of usual Bell scenarios where external quantum inputs are provided to the parties, we show that any entangled quantum state…
The paper introduces a new approach to theory of differential games in which entangled players try to predict and influence actions of their adversaries. The entanglement is generated be a joint probability density known by the players.…
The frame of classical probability theory can be generalized by enlarging the usual family of random variables in order to encompass nondeterministic ones: this leads to a frame in which two kinds of correlations emerge: the classical…
We apply Reinforcement Learning algorithms to solve the classic quantitative finance Market Making problem, in which an agent provides liquidity to the market by placing buy and sell orders while maximizing a utility function. The optimal…
One of the problems frequently mentioned as a candidate for quantum advantage is that of selecting a portfolio of financial assets to maximize returns while minimizing risk. In this paper we formulate several real-world constraints for use…
Quantum state targeting is a quantum game which results from combining traditional quantum state estimation with additional classical information. We consider a particular version of the game and show how it can be played with maximally…
Classical game theory is a powerful tool focusing on optimized resource distribution, allocation and sharing in classical wired and wireless networks. As quantum networks are emerging as a means of providing true connectivity between…
The construction of replication strategies for contingent claims in the presence of risk and market friction is a key problem of financial engineering. In real markets, continuous replication, such as in the model of Black, Scholes and…
Quantum computing is poised to transform the financial industry, yet its advantages over traditional methods have not been evidenced. As this technology rapidly evolves, benchmarking is essential to fairly evaluate and compare different…
At both conceptual and applied levels, quantum physics provides new opportunities as well as fundamental limitations. We hypothetically ask whether quantum games inspired by population dynamics can benefit from unique features of quantum…
What happens when an infinite number of players play a quantum game? In this tutorial, we will answer this question by looking at the emergence of cooperation, in the presence of noise, in a one-shot quantum Prisoner's dilemma (QuPD). We…
Quantum many-body devices suffer from imperfections that destabilize dynamics and limit scalability. We show that the dynamical growth of entanglement can intrinsically protect generic quantum dynamics against coherent and perturbative…
A key problem in financial mathematics is the forecasting of financial crashes: if we perturb asset prices, will financial institutions fail on a massive scale? This was recently shown to be a computationally intractable (NP-hard) problem.…
We consider a coalitional game with the same payoff for all players. To maximize the payoff, the players need to use one collective strategy, if all players are in certain states, and the other strategy otherwise. The current state of each…
Quantum Extreme Learning Machine (QELM) is an emerging hybrid quantum machine learning framework that leverages quantum system dynamics to enhance classical models. However, QELM can suffer from the exponential concentration problem, where…
We discuss the role of information entropy on the behaviour of random processes, and how this might take effect in the dynamics of financial market prices. We then go on to show how the Open Quantum Systems approach can be used as a more…
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…
A new approach to play games quantum mechanically is proposed. We consider two players who perform measurements in an EPR-type setting. The payoff relations are defined as functions of *correlations*, i.e. without reference to classical or…