Depth-Efficient Quantum Topological Data Analysis for Regime-Specific Detection of Financial Stress
- URL: http://arxiv.org/abs/2607.09906v1
- Date: Fri, 10 Jul 2026 18:56:45 GMT
- Title: Depth-Efficient Quantum Topological Data Analysis for Regime-Specific Detection of Financial Stress
- Abstract summary: We present the first adaptation of Pauli Correlation optimisation (PCE) to quantum topological data analysis.<n>From a Takens embedding and Vietoris--Rips filtration of S&P500 returns, we extract $0.8 Laplacians and recast null-space counting as a continuous-PCE-quotient with variational deflation.
- Score: 0.0
- License: http://creativecommons.org/licenses/by/4.0/
- Abstract: We present, to our knowledge, the first adaptation of Pauli Correlation Encoding (PCE) to quantum topological data analysis, reformulating Betti number estimation as a depth-efficient variational optimization over a compressed qubit register. From a Takens embedding and Vietoris--Rips filtration of S&P~500 returns, we extract combinatorial Laplacians and recast null-space counting as a continuous-PCE Rayleigh-quotient minimization with variational deflation, encoding $n_k$ simplex indices into $O(n_k^{1/κ})$ qubits with shallow, ancilla-free circuits. Because the resulting loss is rational rather than bilinear in the correlators, the barren-plateau bound of~\cite{Sciorilli25} does not transfer; empirically the gradient variance decays only polynomially, with no exponential barren plateau, over $n=4$--$12$ qubits. The classical stage matches ripser~\cite{bauer2021ripser} on all 190 sliding windows (2007-2009). On the real market Laplacians ($β_1=1$--$22$), warm-starting from a classical null-space surrogate allows PCE-VQE to recover $β_1$ exactly at every scale, placing the obstacle in the optimisation landscape rather than the encoding. Chronologically split classification gives in-regime ROC AUC $0.818$, but out-of-distribution evaluation on the 2020 COVID shock and 2022 rate cycle (AUC $0.009$, $0.515$) shows the calibration does not generalize across crisis regimes.
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