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This study empirically evaluates digital quantum reservoir computing for ATM cash demand forecasting on near-term hardware, finding that while it fails to beat classical benchmarks in standard error metrics, it demonstrates a unique capacity to capture temporal structures via Dynamic Time Warping. The research highlights the current limitations of four-qubit systems when compared to established classical models like Prophet, yet identifies specific circuit parameters that offer potential for future optimization. Ultimately, the work provides a realistic assessment of where quantum methods stand in practical financial time-series applications today.
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Digital Quantum Reservoir Computing for ATM Time Series Prediction

arXiv2 min read

arXiv:2606.04686v1 Announce Type: new Abstract: We investigate a digital quantum reservoir computing (QRC) framework for multi-step forecasting of automated teller machine (ATM) cash demand time series on near-term quantum devices. The proposed approach uses parametrized four-qubit reservoirs with a fixed structure exploiting partial measurement and reset, where temporal data is encoded in rotation angles. Training is restricted to a classical Ridge-regression readout. We systematically analyze the impact of the circuit ansatz\"e, reservoir memory, measurement-derived observables, and the execution backend on the forecasting performance. Experiments are performed with noiseless simulation, noise-aware emulation, and a real IQM Spark quantum processor. Although the QRC models do not outperform the classical Prophet benchmark in terms of Mean Absolute Error and Normalized Mean Squared Error metrics, they achieve more competitive results in Dynamic Time Warping metric, indicating a partial ability to capture temporal structure. These findings provide an empirical assessment of digital QRC for realistic financial forecasting and highlight both its current limitations and its potential on near-term quantum hardware.

Abstract:We investigate a digital quantum reservoir computing (QRC) framework for multi-step forecasting of automated teller machine (ATM) cash demand time series on near-term quantum devices. The proposed approach uses parametrized four-qubit reservoirs with a fixed structure exploiting partial measurement and reset, where temporal data is encoded in rotation angles. Training is restricted to a classical Ridge-regression readout. We systematically analyze the impact of the circuit ansatzë, reservoir memory, measurement-derived observables, and the execution backend on the forecasting performance. Experiments are performed with noiseless simulation, noise-aware emulation, and a real IQM Spark quantum processor. Although the QRC models do not outperform the classical Prophet benchmark in terms of Mean Absolute Error and Normalized Mean Squared Error metrics, they achieve more competitive results in Dynamic Time Warping metric, indicating a partial ability to capture temporal structure. These findings provide an empirical assessment of digital QRC for realistic financial forecasting and highlight both its current limitations and its potential on near-term quantum hardware.

Quantum Physics (quant-ph); Computational Engineering, Finance, and Science (cs.CE)

arXiv:2606.04686 [quant-ph]

(or arXiv:2606.04686v1 [quant-ph] for this version)

https://doi.org/10.48550/arXiv.2606.04686 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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Full text under the publisher's open licence · 260 words

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