Questions tagged [quantum-computing-for-finance]

Used for application of quantum algorithms in finance industry.

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Interpreting VQE and QAOA based solutions in portfolio optimization

I am going through portfolio optimization using Qiskit. It really looks interesting. The module has both VQE and QAOA algorithms for optimizing the portfolios. In the VQE based solution the ...
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1 vote
1 answer
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Why can quantum computing help in Portfolio Optimization?

Why is it said that Portfolio Optimization is a good case for quantum computing? Is it only speed? IF speed is the only benefit, why cant we build more powerful supercompuetrs?
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How can I evaluate the weights of different shares in a portfolio optimization problem?

I'm trying to do a comparison between the classical way to do portfolio selection with Markovitz and the quantum counterpart. With Markovitz I'm able to generate an output representing the best ...
1 vote
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What are the getting-started-resources for quantum finance? [closed]

What are suitable books, websites or learning material you can advice to get started with quantum finance?
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Qiskit Portfolio Optimization

After running this code: I have an error: ...
1 vote
1 answer
58 views

Print runtime of an optimizer

I want to find the runtime of my program, i.e. the time it is in the quantum computer without queue time. However, I am using an optimizer so the code is a little different. ...
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1 answer
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How to build and visualize circuit from matrix?

In paper Efficient quantum algorithm for solving travelling salesman problem: An IBM quantum experience, the authors use gate $U_j$ and its decomposition $$ U_j = \begin{pmatrix} \mathrm{e}^{ia} &...
1 vote
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119 views

How to load time-series stock data into quantum amplitude estimation

Now I got some time-series data as showing example below: I have spent a period of time realizing the QAE from qiskit, and I found that the tutorial used uncertainty model to reproduce data, while I ...
3 votes
1 answer
76 views

How to decide bias in Hamiltonian Ising model?

I am trying to code finance portfolio optimisation problem into a quantum annealer, using the Hamiltonian Ising model. I am using the dwave module ...
3 votes
1 answer
190 views

Applications of Quantum Computing to Economics

I have recently been interested in the field of 'Econophysics' which as I understand it is the practice of basically applying results of physics in areas such as non-linear dynamics and stochastic ...
2 votes
3 answers
374 views

Computing the CDF with QAE in Qiskit

I want to load a lognormal distribution and then use an IntegerComparator to flip a qubit ($|0\rangle$ to $|1\rangle$) if its value is less than a threshold. Then I want to use an Quantum Amplitude ...
3 votes
2 answers
567 views

Traveling salesman problem in Qiskit: cannot find a solution on simulator

I am trying to solve Traveling Salesman Problem (TSP) in Qiskit based on Qiskit Tutorial. I used TSP for four cities described by this distance matrix: $$ D = \begin{pmatrix} 0 & 207 & 92 &...
2 votes
2 answers
204 views

Loading a random distribution using controlled-Y rotations

In the paper by Stamatopoulos et al., the authors say that it is possible to load a distribution on a three qubit state to obtain: In Qiskit finance this is performed using the uncertainty model ...
1 vote
0 answers
62 views

How to construct Hamiltonian for combinatorial optimization problems and then convert into Pauli basis?

Suppose I have a portfolio optimization problem where I have to minimize, $$qx^T\sum x - \mu^Tx$$ where q is the maximum risk and x is {0,1}^n and $\mu$ are the expected returns. Now I have to convert ...
2 votes
2 answers
262 views

Qiskit sample - Portfolio optimization

I've recently tried to run this sample from Qiskit (Portfolio Optimization) I was able to change RandomDataProvider to YahooDataProvider and able to run it on real stock prices. However, there is one ...
5 votes
1 answer
327 views

Qiskit Portfolio Optimization Application

I recently got flung into the world of quantum computing and I'm a beginner at coding. I was assigned to do the Portfolio Optimization tutorial of the Qiskit Finance Tutorials and input real data. ...
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3 votes
2 answers
271 views

How can I load a probability distribution using a quantum circuit in Qiskit?

Can someone suggest me a way to load a distribution (for example a discretized Gaussian distribution) into a quantum computer using a quantum circuit? I tried to implement the code using Qiskit.
2 votes
1 answer
96 views

Error using FixedIncomeExpectedValue sample

I am working with Aqua sample (qiskit-aqua/test/finance/test_readme_sample.py ) that uses the FixedIncomeExpectedValue and the <...
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2 answers
463 views

What is Ising Hamiltonian ? What its role in Portfolio Diversification?

I am asking this question with reference to this https://github.com/Qiskit/qiskit-iqx-tutorials/blob/master/qiskit/advanced/aqua/finance/optimization/portfolio_diversification.ipynb Happy to know new ...
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3 votes
2 answers
521 views

Rotations to encode $f(x)$ into ancilla qubit for quantum Monte Carlo

I'm trying to understand the quantum monte-carlo algorithm starting at the most basic version. A key step is rotating (Algorithm 1 p.g 8), an ancilla bit by rotation $R$ with respect to the value of a ...
1 vote
2 answers
246 views

What is the risk factor on IBM's portfolio optimization notebook?

In the notebook "portfolio optimization" on IBM's platform the goal is to calculate the optimal stock selection using a classical and a quantum algorithm (VQE). A random portfolio is generated and ...
1 vote
0 answers
48 views

Application Query [closed]

I had written earlier to propose an econometric modeling application that may lend itself to a quantum computing approach, and was asking how best to proceed. The model would be centered around the ...
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1 vote
1 answer
264 views

Is it possible to demonstrate a quadratic speed-up of a quantum algorithm on a classical computer?

In article Quantum computational finance: Monte Carlo pricing of financial derivatives the authors said that: Firstly: While a practical quantum computer has yet to become a reality, we can ...
5 votes
2 answers
794 views

Quantum computing in finance - list of articles

I am trying to find application of a quantum computing in finance. So far I found these papers: Quantum computing for finance: Overview and prospects Quantum computational finance: quantum algorithm ...
9 votes
1 answer
1k views

Travelling salesman problem on quantum computer

Recently a pre-print of article Efficient quantum algorithm for solving travelling salesman problem: An IBM quantum experience appeared. The authors use a phase estimation as a core for their ...
3 votes
1 answer
431 views

Cannot replicate results in article on pricing financial derivatives on IBM Q

I am trying to implement a circuit for searching for the largest eigenvalue and respective eigenvector of an operator, i.e. phase estimation, introduced in article Towards Pricing Financial ...
3 votes
1 answer
693 views

Quantum pricing of financial derivatives (call option) in Qiskit Aqua

In finance, a European call gives the buyer the right to buy some underlying asset such as a stock at some pre-determined strike price at a specific expiration date. The Black-Scholes equation is a ...