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Financial Modeling Using Quantum Computing

You're reading from   Financial Modeling Using Quantum Computing Design and manage quantum machine learning solutions for financial analysis and decision making

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Product type Paperback
Published in May 2023
Publisher Packt
ISBN-13 9781804618424
Length 292 pages
Edition 1st Edition
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Authors (4):
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Iraitz Montalban Iraitz Montalban
Author Profile Icon Iraitz Montalban
Iraitz Montalban
Anshul Saxena Anshul Saxena
Author Profile Icon Anshul Saxena
Anshul Saxena
Javier Mancilla Javier Mancilla
Author Profile Icon Javier Mancilla
Javier Mancilla
Christophe Pere Christophe Pere
Author Profile Icon Christophe Pere
Christophe Pere
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Table of Contents (16) Chapters Close

Preface 1. Part 1: Basic Applications of Quantum Computing in Finance
2. Chapter 1: Quantum Computing Paradigm FREE CHAPTER 3. Chapter 2: Quantum Machine Learning Algorithms and Their Ecosystem 4. Chapter 3: Quantum Finance Landscape 5. Part 2: Advanced Applications of Quantum Computing in Finance
6. Chapter 4: Derivative Valuation 7. Chapter 5: Portfolio Management 8. Chapter 6: Credit Risk Analytics 9. Chapter 7: Implementation in Quantum Clouds 10. Part 3: Upcoming Quantum Scenario
11. Chapter 8: Simulators and HPC’s Role in the NISQ Era 12. Chapter 9: NISQ Quantum Hardware Roadmap 13. Chapter 10: Business Implementation 14. Index 15. Other Books You May Enjoy

Quantum computing

As we saw in the previous section, in order to estimate the future price of an equity, many iterations over potential future prices need to be run. However, what if we could establish a way to load those potential distributions into quantum states and evaluate them using quantum devices? The following subsection will dig into different ways to load those future price distributions into quantum states using existing solutions for direct loading, such as Qiskit functionalities and adversarial training using PennyLane, which might be better suited for ML tasks due to its differentiable programming approach (similar to TensorFlow or PyTorch in the classical ML domain).

Implementation in Qiskit

As discussed in Chapter 2, Qiskit is one of the most mature quantum computing frameworks available and counts with higher-level modules so that specific applications can be easily translated to the quantum regime. This is the case with Qiskit Finance, which we will explore...

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