Sentiment Analysis of Financial Text Using Quantum Language Processing

Expanding Frontiers: An Alternative Investments & Machine Learning Podcast

This episode discusses the research paper, "Hybrid Quantum Circuits for Interpretable Financial Sentiment.” The study applies the Quantum Distributional Compositional Circuit (QDisCoCirc) framework to perform three-class sentiment analysis on financial texts, motivated by the need for greater mechanistic interpretability than offered by traditional Large Language Models. The methodology involves segmenting sentences into short, independent chunks, each generating a semantic Bloch vector representation via classical quantum simulation. To capture syntactic context and word order missed by simple aggregation, the core contribution is a hybrid model that feeds the vector sequence into a shallow Transformer encoder, leveraging Combinatory Categorial Grammar (CCG) type embeddings to explicitly model grammatical structure. This sequence model yields higher predictive performance and allows for the quantitative tracking of contributions from both semantic and syntactic information channels. Finally, the research introduces novel interventional explanation metrics to validate the causal relationship between specific model components and the prediction outcome.

References

“Sentiment Analysis of Financial Text Using Quantum Language Processing QDisCoCirc" by Takayuki Sakuma [Submitted on 24 Nov 2025]
https://doi.org/10.48550/arXiv.2511.18804

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