Classiq and Sumitomo highlight potential for quantum Monte Carlo simulations in new trial [English]

Author: Tyler Pathe | Source: FinTech Futures | Read the full article in English

In a recent collaboration, Classiq Technologies and Sumitomo Corporation have made significant strides in the field of quantum computing, particularly in enhancing Monte Carlo simulations. These simulations are widely used in finance to evaluate risks associated with derivatives and credit portfolios. The partnership aimed to create more efficient quantum circuits that can perform these complex calculations more effectively.

Classiq's innovative approach involved using a new method that reduces the number of quantum bits, or qubits, needed for simulations. Traditional methods require a large number of qubits, which can be a limitation in quantum computing. However, the new technique generates random numbers in stages, significantly lowering the qubit count while maintaining accuracy. This advancement could lead to more practical applications of quantum computing in financial risk management.

The results of their project were promising, showing that both the traditional and new simulation methods could achieve up to 95% compression without a significant increase in qubit usage. This improvement not only enhances the reliability of quantum simulations but also paves the way for their use in large-scale financial applications, making complex risk assessments more feasible and efficient.

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