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Financial Modeling Using Quantum Computing

You're reading from  Financial Modeling Using Quantum Computing

Product type Book
Published in May 2023
Publisher Packt
ISBN-13 9781804618424
Pages 292 pages
Edition 1st Edition
Languages
Authors (4):
Anshul Saxena Anshul Saxena
Profile icon Anshul Saxena
Javier Mancilla Javier Mancilla
Profile icon Javier Mancilla
Iraitz Montalban Iraitz Montalban
Profile icon Iraitz Montalban
Christophe Pere Christophe Pere
Profile icon Christophe Pere
View More author details

Table of Contents (16) Chapters

Preface 1. Part 1: Basic Applications of Quantum Computing in Finance
2. Chapter 1: Quantum Computing Paradigm 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 Support Vector Machines

The Support Vector Classifier (SVC) and Quantum Support Vector Classifier (QSVC) are the first models that will be used to look at our synthetic dataset, and we will see how a quantum algorithm versus a classical algorithm can work to find potential defaulters. One of the most widely used techniques is known as Support Vector Machines (SVM) (Hearst et al., 1998), which make use of hyperplanes in order to find separable spaces within our data regime. These hyperplanes are responsible for separating our N-dimensional information into different spaces, trying to maximize the margin between samples from the regions split by the hyperplane itself. By softening this margin constraint and allowing some samples to be misclassified, we allow the model to generalize from the dataset itself. This softened version is what we will call an SVC.

Thanks to the abstraction level that Python libraries such as scikit-learn provide, its usage is as simple as calling...

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