Book Image

Quantum Machine Learning and Optimisation in Finance

By : Antoine Jacquier, Oleksiy Kondratyev
Book Image

Quantum Machine Learning and Optimisation in Finance

By: Antoine Jacquier, Oleksiy Kondratyev

Overview of this book

With recent advances in quantum computing technology, we finally reached the era of Noisy Intermediate-Scale Quantum (NISQ) computing. NISQ-era quantum computers are powerful enough to test quantum computing algorithms and solve hard real-world problems faster than classical hardware. Speedup is so important in financial applications, ranging from analysing huge amounts of customer data to high frequency trading. This is where quantum computing can give you the edge. Quantum Machine Learning and Optimisation in Finance shows you how to create hybrid quantum-classical machine learning and optimisation models that can harness the power of NISQ hardware. This book will take you through the real-world productive applications of quantum computing. The book explores the main quantum computing algorithms implementable on existing NISQ devices and highlights a range of financial applications that can benefit from this new quantum computing paradigm. This book will help you be one of the first in the finance industry to use quantum machine learning models to solve classically hard real-world problems. We may have moved past the point of quantum computing supremacy, but our quest for establishing quantum computing advantage has just begun!
Table of Contents (4 chapters)

6
Qubits and Quantum Logic Gates

A computation can be broadly defined as a transformation of one memory state into another. Put slightly differently, a computation is a function that transforms information  [281]. In the case of classical digital computing, the fundamental memory unit is a binary digit (bit) of information. Functions that operate on bits of information are called logic gates. Logic gates are Boolean functions that can be combined into circuits capable of performing addition and multiplication, as well as more complex operations. In logic gates, the number of output bits does not have to be the same as the number of input bits.

A computation may seem to be an abstract mathematical concept but it always requires some physical system in order to be executed. It does not matter what this physical system is: billiard balls, electric switches, transistors, or anything else – the computation is substrate independent. However, it is always some physical process...