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Quantum Circuit Learning for Volatility Modeling: Multifractal Analysis of Realized Volatility Time Series

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  • Tetsuya Takaishi

Abstract

Herein, we propose a quantum circuit learning framework for modeling the realized volatility (RV) of Bitcoin and investigate the statistical properties of the predicted time series through multifractal analysis. Unlike conventional GARCH-type models, which require a pre-specified functional form for the volatility process, a parameterized quantum circuit directly approximates the volatility function from empirical data, eliminating the need for explicit model selection. Using five-minute Bitcoin price data, we construct daily RV, train a single-qubit parameterized quantum circuit, and generate a long synthetic time series from the optimized quantum circuit. Multifractal Detrended Fluctuation Analysis is applied to calculate the generalized Hurst exponent $h(q)$, the singularity spectrum $f(\alpha)$, and the multifractal scaling exponent $\tau(q)$. The predicted return series exhibits $h(2)\approx 0.5$, consistent with near-random dynamics, and both the predicted and the empirical return series display multifractality that partially persists after random shuffling. The increment series of RV shows pronounced anti-persistence with $h(2)\approx 0.05$--$0.1$, consistent with the rough volatility hypothesis. These results demonstrate that a simple single-qubit parameterized quantum circuit captures qualitatively some observed properties in Bitcoin volatility dynamics.

Suggested Citation

  • Tetsuya Takaishi, 2026. "Quantum Circuit Learning for Volatility Modeling: Multifractal Analysis of Realized Volatility Time Series," Papers 2609.04569, arXiv.org.
  • Handle: RePEc:arx:papers:2609.04569
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    File URL: https://arxiv.org/pdf/2609.04569
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