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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

Conclusion

As mentioned earlier, even if accuracy is a common measure from the classification report that most people will look at, the way to treat this kind of imbalanced data scenario is to compare the models using a balanced accuracy score, or AUC score, which in this case are the same, since it is a binary classification challenge.

Figure 6.8 – A comparison of classification results between classical and hybrid quantum-classical methods

Figure 6.8 – A comparison of classification results between classical and hybrid quantum-classical methods

At first glance, the results do not appear to be conclusive about the benefits of using hybrid quantum-classical for classification problems that the finance sector may face. However, the purpose of the exercise in this chapter is to get people to think about their own business challenges and do more research, since we can see that quantum machine learning could be at least equal or slightly better than classical ML methods (e.g., QSVC versus SVC). When any incremental benefit is achieved in terms of...

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