FIX and REPLACE IonQ and Fidelity Center for Applied Technology demonstrate quantum machine learning for finance on IonQ quantum computers

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  • New paper describes how quantum machine learning algorithms have an exponential advantage over their classical counterparts in financial analysis

  • The algorithm exploits copulas – a common data analysis technique – to better describe complex relationships between multiple variables, such as stock prices

  • The algorithm was demonstrated on the latest IonQ quantum computer and outperformed the equivalent algorithm based on classical machine learning.

  • Quantum algorithms can be applied to statistical problems in multiple industries, thus expanding near-term opportunities for quantum computing

COLLEGE PARK, Maryland, September 22, 2021– (COMMERCIAL THREAD) – Please replace version with the following corrected version due to multiple revisions.

The updated version reads as follows:

IONQ AND FIDELITY CENTER FOR APPLIED TECHNOLOGY DEMONSTRATE QUANTUM MACHINE LEARNING FOR FINANCE ON IONQ QUANTUM COMPUTERS

  • New paper describes how quantum machine learning algorithms have an exponential advantage over their classical counterparts in financial analysis

  • The algorithm exploits copulas – a common data analysis technique – to better describe complex relationships between multiple variables, such as stock prices

  • The algorithm was demonstrated on the latest IonQ quantum computer and outperforms the equivalent algorithm based on classical machine learning.

  • The quantum algorithm can be applied to statistical problems in multiple industries, expanding short-term opportunities for quantum computing

IonQ, Inc. (“IonQ”), the leader in quantum computing, today announced the release of a new paper in collaboration with Fidelity Center for Applied Technology (FCAT) which demonstrates how its quantum computers can outperform conventional computers to generate high-quality data to use in testing financial models. Financial institutions routinely use asset allocation, electronic trading, and pricing models, and require test data to validate the accuracy of these models. The new technique, demonstrated by FCAT on IonQ’s latest quantum computers, has the potential to be the first class of quantum machine learning models to be deployed for wide commercial use.

Today, many financial institutions generate data with classical machine learning to test their financial models. These classic approaches are often limited because the actual dependencies between variables – for example, in a portfolio of stocks – are too complex to be modeled. IonQ and FCAT have demonstrated that data generated with quantum machine learning algorithms is more representative of these real-world dependencies and therefore better able to account for extreme cases like black swan events.

The technique invented by IonQ and FCAT exploits copulas, a method often used in statistical models to describe the relationships between a large number of variables. For example, large financial institutions use copulas to understand the relationships between stock prices (if the price of X is in a particular range, then the price of Y tends to increase). By using quantum computers to implement copulas, IonQ and FCAT have demonstrated their ability to build complex models beyond the capabilities of classical computers.

“This research, performed on IonQ hardware, shows quite clearly that harnessing quantum computing can lead to superior financial modeling results. The application of quantum machine learning to other industries, ranging from climate science to geopolitics, means that a quantum future is just around the corner, “said Peter Chapman, CEO and Chairman of IonQ.” Fidelity has long been a leader in understanding how news technologies will shape markets and industries, and we are excited to work with them in this space. ”

The copula method underlying the work of FCAT and IonQ can be applied to any industry dealing with complex systems involving several correlated variables. In the near future, quantum machine learning could be applied to climate research, medical imaging, or recommender systems. In finance, the first quantum machine learning methods using copulas are likely to be applied to risk management and portfolio optimization.

“At FCAT, we follow new and emerging technologies and trends to help Fidelity meet the changing needs of our clients and associates,” said Adam Schouela, Head of Emerging Technologies, Fidelity Center for Applied Technology. “Classical computing has allowed breakthroughs in the financial services space, and we expect the impact of quantum computing to be no less significant. We are excited that our latest research with IonQ can help demonstrate the potential of quantum computing in this space.

The news continues a year of considerable momentum for IonQ. Its trapped ion quantum computers were recently added to the Google Cloud Marketplace, making IonQ the only vendor whose quantum computers are available through all major cloud providers. Additionally, IonQ’s co-founders joined the White House National Quantum Initiative Advisory Board to accelerate the development of the National Strategic Technology Imperative.

About IonQ, Inc.

IonQ, Inc. is the leader in quantum computing, with a proven track record in innovation and deployment. IonQ’s 32-qubit quantum computer is the most powerful quantum computer in the world, and IonQ has defined what it believes to be the best way forward to evolve. IonQ is the only company whose quantum systems are available through Amazon Braket, Microsoft Azure, and Google Cloud, as well as direct API access. IonQ was founded in 2015 by Chris Monroe and Jungsang Kim based on 25 years of pioneering research at the University of Maryland and Duke University. To learn more, visit www.IonQ.com.

About Fidelity Investments

Fidelity’s mission is to inspire a better future and deliver better results to the clients and businesses we serve. With $ 11.2 trillion in assets under administration, including $ 4.2 trillion in discretionary assets as of July 31, 2021, we are focused on meeting the unique needs of a diverse set of clients: helping more than 38 million people to invest their own savings, 22,000 companies manage employee benefit programs, as well as provide more than 13,500 companies and wealth management institutions with investment and technology solutions to drive growth . A private company for 75 years, Fidelity employs more than 52,000 associates who are focused on the long-term success of our clients. For more information on Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

About the Fidelity Center for Applied Technology

The Fidelity Center for Applied Technology (FCAT) is a catalyst for revolutionary ideas that advance Fidelity’s market leadership and enhance the experience for every customer. FCAT teams follow emerging social and technological trends, test product concepts and ideas, and create scalable solutions that propel Fidelity forward. For more information on FCAT, visit www.fcatalyseur.com.

“Fidelity Investments”, “Fidelity” and / or “Fidelity Center for Applied Technology” collectively mean FMR LLC, a US company, and its subsidiaries.

Fidelity Investments® is an independent company, not affiliated with IonQ. Fidelity Investments is a registered service mark of FMR LLC. 995606.1.0

See the source version on businesswire.com: https://www.businesswire.com/news/home/20210922005347/en/

Contacts

For IonQ:
[email protected]

Katie Pesek
703-795-1928
[email protected]


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