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Quantum Machine Learning and Optimisation in Finance

You're reading from   Quantum Machine Learning and Optimisation in Finance Drive financial innovation with quantum-powered algorithms and optimisation strategies

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Product type Paperback
Published in Dec 2024
Publisher Packt
ISBN-13 9781836209614
Length 494 pages
Edition 2nd Edition
Languages
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Authors (2):
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Jacquier Antoine Jacquier Antoine
Author Profile Icon Jacquier Antoine
Jacquier Antoine
Alexei Kondratyev Alexei Kondratyev
Author Profile Icon Alexei Kondratyev
Alexei Kondratyev
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Table of Contents (21) Chapters Close

Preface 1. Chapter 1 The Principles of Quantum Mechanics FREE CHAPTER 2. Part I Analog Quantum Computing – Quantum Annealing
3. Chapter 2 Adiabatic Quantum Computing 4. Chapter 3 Quadratic Unconstrained Binary Optimisation 5. Chapter 4 Quantum Boosting 6. Chapter 5 Quantum Boltzmann Machine 7. Part II Gate Model Quantum Computing
8. Chapter 6 Qubits and Quantum Logic Gates 9. Chapter 7 Parameterised Quantum Circuits and Data Encoding 10. Chapter 8 Quantum Neural Network 11. Chapter 9 Quantum Circuit Born Machine 12. Chapter 10 Variational Quantum Eigensolver 13. Chapter 11 Quantum Approximate Optimisation Algorithm 14. Chapter 12 Quantum Kernels and Quantum Two-Sample Test 15. Chapter 13 The Power of Parameterised Quantum Circuits 16. Chapter 14 Advanced QML Models 17. Chapter 15 Beyond NISQ 18. Bibliography
19. Index 20. Other Books You Might Enjoy

1.3 Pure and Mixed States

There are situations when we have to deal with either entangled components of a quantum mechanical system or a statistical ensemble of quantum states. In such cases the system cannot be described with the help of a state vector. Here, we look at such situations and provide a mathematical tool for describing them.

1.3.1 Density matrix

Let us start with the state of a combined two-component physical system given by (1.2.5). Let (|i⟩)i=1,...,N and (|j⟩)j=1,...,M denote, respectively, the standard orthonormal bases of the Hilbert spaces of systems A and B:

 N M ∑ ∑ |ψA⟩ = αi |i⟩, |ψB ⟩ = βj |j⟩, i=1 j=1

where (αi)i=1,...,N and (βj)j=1,...,M are some probability amplitudes. The states that allow the state vector representation (1.3.1) are called pure states. In this case, the state of the combined system is

 N M |ψ⟩ = |ψA ⟩⊗ |ψB ⟩ = ∑ ∑ αiβj |i⟩⊗ |j⟩. i=1 j=1

However, in general, the state of the combined system would look like

 ∑N ∑M |ψ ⟩ = γij |i⟩⊗ |j⟩, i=1j=1

where γij are probability amplitudes that may not necessarily be factorised as the product of probability amplitudes (αi)i=1,...,N and (βj)j=1,...,M. If γij cannot be factorised as αiβj, then the component systems A and B are entangled and their states cannot be represented by the state vectors (1.3.1). Such states of systems A and B are called mixed states.

The more general setup is that of an ensemble of states of the form {pk,|ψk ⟩}k=1,…,K, where each |ψi⟩ is a quantum state whose wave function is known with certainty (although this does not necessarily provide full knowledge of the measurement statistics), and each pk is the associated probability (not amplitude) in [0,1]. In order to define properly pure and mixed states, introduce the density operator as follows:

Definition 7. A density operator ρ is a positive semidefinite Hermitian operator with unit trace that takes the form

 K K ρ := ∑ p |ψ ⟩⟨ψ |, ∑ p = 1, p ≥ 0, for all k = 1,...,K. k=1 k k k k=1 k k

A density operator ρ corresponds to a density matrix (ρkl)k,l=1,…,K such that

 † K∑ ρ = ρ , Tr(ρ) ≡ ρkk = 1, ρkk ≥ 0, for all k = 1,...,K. k=1

1.3.2 Pure state

A pure state is one that can be represented by a state vector

 N |ψ⟩ = ∑ αi |i⟩, i=1

where (αi)i=1,...,N are probability amplitudes in such that i=1N|αi|2 = 1. In the ensemble setup above, this means that there exists k ∈{1,…,N} such that pk = 1 and hence |ψ⟩= |ψk∗⟩ and, therefore, ρ = |ψ ⟩ψ|. The density matrix also allows us to compute expectations of the form (1.2.4).

Lemma 3. Let ρ be the density matrix associated with the pure state (1.3.2) and let A be an observable (Hermitian operator), then

⟨A⟩ := ⟨ψ |A |ψ ⟩ = Tr (ρA ).

Proof. The lemma follows from the immediate computation:

ψ|A|ψ⟩ = ψ|A i=1Nα i|i⟩= i=1Nα i ψ|A|i⟩
= i=1N⟨i|ψ⟩ψ|A|i⟩= i=1N i|ρA|i⟩= Tr(ρA).

With the state |ψ ⟩ given by (1.3.2), we obtain

 N∑ ∑N ⟨A ⟩ = αiα∗j ⟨j|A |i⟩. i=1 j=1

At the same time we have

 ∑N ∑N ⟨A⟩ = Tr(ρA ) = ρij ⟨j|A |i⟩. i=1j=1

A comparison of (1.3.2) and (1.3.2) yields the following expression for the density matrix of a pure state:

 ∑N N∑ ρij = αiα ∗j, ρ = αiα∗j |i⟩⟨j| = |ψ⟩⟨ψ |. i=1j=1

Example: An example of a pure state is the Hadamard state

 ⌊ ⌋ 1 1 1 |+ ⟩ = √--(|0⟩+ |1⟩) = √--⌈ ⌉, 2 2 1

with the corresponding density matrix

 ⌊ ⌋ ρ = |+⟩⟨+ | = 1-⌈1 1⌉ . 2 1 1

1.3.3 Mixed state

A mixed state is one that cannot be represented by a single pure state vector, and is therefore represented as a statistical distribution of pure states in the form of an ensemble of quantum states {pk,|ψk⟩}k=1,…,N, where k=1Npk = 1 and pk [0,1] for each k. The density of a mixed state therefore reads

 N∑ ρ = pk |ψk ⟩⟨ψk|. k=1

Similarly to Lemma 3, we can write expectations of observables with respect to mixed states using the density matrix:

Lemma 4. Let ρ be the density matrix associated with the mixed state (1.3.3) and let A be an observable (Hermitian operator), then

 N∑ Tr(ρA ) = pk⟨ψk|A |ψk⟩ . k=1

Proof. The lemma follows from the immediate computation

Tr(ρA) = i=1N i|ρA|i⟩= i=1N i|( ∑N ) pk |ψk ⟩⟨ψk| k=1A|i⟩
= k=1Np k(∑N ) ⟨i|ψk ⟩⟨ψk|A |i⟩ i=1= k=1Np k ψk|A|ψk⟩.

Let us see now how the density matrix formalism can help us describe the state of a combined system. Consider an entangled state of two systems, A and B, given by (1.3.1), and a Hermitian operator A that only acts within the Hilbert space of system A. What would be the expectation value of A in this state? Starting with (1.2.4), we obtain

 ∑N ∑M ∑N M∑ ⟨A⟩ = γijγ∗kl⟨k|A |i⟩ ⟨l|j⟩. i=1j=1k=1 l=1

Since only terms with l = j survive in (1.3.3) due to the orthogonality of the basis states, we have

 ( ) N∑ ∑N M∑ ⟨A⟩ = ( γijγ∗kj) ⟨k|A |i⟩. i=1 k=1 j=1

Thus, the density matrix that describes the mixed state of system A is

 ∑M ρik = γijγ∗kj. j=1

Note that in the case where the probability amplitudes γij can be factorised as the product of probability amplitudes (αi)i=1,...,N and (βj)j=1,...,M, we obtain

 M∑ M∑ ρik = αiβjα∗kβj∗= αiα ∗k |βj|2 = αiα∗k, j=1 j=1

which describes a pure state.

Lemma 5. Let ρ be a density matrix. The inequality Tr(ρ2) 1 always holds and Tr(ρ2) = 1 if and only if ρ corresponds to a pure state.

Proof. Consider an ensemble of pure states {pi,|ψi⟩}i=1,…,N. From (1.3.3) we get

Tr(ρ2) = Tr( ( ) ( ) ) ∑N ∑N ( pi |ψi⟩⟨ψi| ( pj |ψj⟩⟨ψj|) ) i=1 j=1
= Tr( N∑ ∑N ) ( pipj |ψi⟩⟨ψi| |ψj⟩⟨ψj|) i=1 j=1,

and, due to orthogonality, we obtain

Tr(ρ2) = Tr( ) N∑ 2 pi |ψi⟩⟨ψi| i=1
= i=1Np i2Tr(|ψi⟩ψi|)
= i=1Np i2⟨ψi|ψi ⟩= i=1Np i2,

which is smaller than 1 since the pi are probabilities in [0,1] summing up to 1. Assume now that Tr(ρ2) equals 1, then so does i=1Npi2. If pi (0,1) for all i = 1,…,N, then

 N∑ 2 ∑N 1 = pi < pi = 1, i=1 i=1

which is a contradiction, and therefore there exists i ∈{1,…,N} such that pi = 1, so that ρ = |ψi∗⟩ψi| is a pure state. Conversely, if ρ = |ψi⟩ψi| for some i ∈{1,…,N} represents a pure state, then

Tr(ρ2) = Tr(|ψi⟩⟨ψi| |ψi⟩⟨ψi|) = Tr(|ψi⟩⟨ψi|) = ⟨ψi|ψi⟩ = 1.

Example: An example of a mixed state is a statistical ensemble of states |0⟩ and |1⟩. If a physical system is prepared to be in either state |0⟩ or state |1⟩ with equal probability, it can be described by the following mixed state:

 ⌊ ⌋ 1 1 1 1 0 ρ = --|0⟩⟨0|+ -|1⟩⟨1| = -⌈ ⌉ . 2 2 2 0 1

Note that this is different from the density matrix of the pure state

|ψ ⟩ = 1√--(|0⟩ + |1⟩), 2

which reads

ρψ = |ψ ⟩ψ|= 1- 2(|0⟩+ |1⟩)(0|+ 1|)
= 1 2-(|0⟩0|+ |1⟩0|+ |0⟩1|+ |1⟩1|) = 1 2-⌊ ⌋ 1 1 ⌈ ⌉ 1 1.

Unlike pure quantum states, mixed quantum states cannot be described by a single state vector. However, pure states and mixed states can be described using the density matrix formalism.

You have been reading a chapter from
Quantum Machine Learning and Optimisation in Finance - Second Edition
Published in: Dec 2024
Publisher: Packt
ISBN-13: 9781836209614
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