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The first quantum computers are expected to perform well at quadratic optimisation problems. In this paper a quadratic problem in finance is taken, the Portfolio Optimisation problem. Here, a set of assets is chosen for investment, such…

Portfolio Management · Quantitative Finance 2020-12-03 Frank Phillipson , Harshil Singh Bhatia

One of the problems frequently mentioned as a candidate for quantum advantage is that of selecting a portfolio of financial assets to maximize returns while minimizing risk. In this paper we formulate several real-world constraints for use…

Materials Science · Physics 2022-03-10 Salvatore Certo , Anh Dung Pham , Daniel Beaulieu

We investigate a hybrid quantum-classical solution method to the mean-variance portfolio optimization problems. Starting from real financial data statistics and following the principles of the Modern Portfolio Theory, we generate…

Quantum Physics · Physics 2019-07-01 Davide Venturelli , Alexei Kondratyev

We continue to investigate the use of quantum computers for building an optimal portfolio out of a universe of 60 U.S. listed, liquid equities. Starting from historical market data, we apply our unique problem formulation on the D-Wave…

General Finance · Quantitative Finance 2020-08-21 Jeffrey Cohen , Alex Khan , Clark Alexander

In this paper we tackle the problem of dynamic portfolio optimization, i.e., determining the optimal trading trajectory for an investment portfolio of assets over a period of time, taking into account transaction costs and other possible…

Quantum annealing is a heuristic algorithm for solving combinatorial optimization problems, and D-Wave Systems Inc. has developed hardware for implementing this algorithm. The current version of the D-Wave quantum annealer can solve…

Quantum Physics · Physics 2022-11-09 Shuntaro Okada , Masayuki Ohzeki , Shinichiro Taguchi

Hybrid-quantum classical optimization has emerged as a promising direction for addressing financial decision problems under current quantum hardware constraints. In this work we present a practical end-to-end portfolio optimization pipeline…

In this note, we describe an experiment on portfolio optimization using the Quadratic Unconstrained Binary Optimization (QUBO) formulation. The dataset we use is taken from a real-world problem for which a classical solution is currently…

Quantum annealing has emerged as a powerful tool for solving combinatorial optimization problems efficiently, making use of the principles of quantum mechanics. Companies are increasingly investing in the market of quantum computers,…

Quantum Physics · Physics 2025-09-29 Lorenzo Mazzei , Giada Beccari , Mirko Laruina , Marco Cococcioni

Portfolio optimization (PO) is extensively employed in financial services to assist in achieving investment objectives. By providing an optimal asset allocation, PO effectively balances the risk and returns associated with investments.…

Quantum Physics · Physics 2024-07-09 Zhijie Tang , Alex Lu Dou , Arit Kumar Bishwas

The quest for real-time dynamic optimization solutions in the process industry represents a formidable computational challenge, particularly within the realm of applications like model-predictive control, where rapid and reliable…

Optimization and Control · Mathematics 2024-04-29 Dennis Michael Nenno , Adrian Caspari

Quantum annealers of D-Wave Systems, Inc., offer an efficient way to compute high quality solutions of NP-hard problems. This is done by mapping a problem onto the physical qubits of the quantum chip, from which a solution is obtained after…

Quantum Physics · Physics 2022-11-30 Elijah Pelofske , Georg Hahn , Hristo N. Djidjev

In this work we investigate the capabilities of a hybrid quantum-classical procedure to explore the solution space using the D-Wave $2000Q^{TM}$ Quantum Annealer device. Here we study the ability of the Quantum hardware to solve the Number…

Quantum Physics · Physics 2020-03-10 Luca Asproni , Davide Caputo , Blanca Silva , Giovanni Fazzi , Marco Magagnini

Quantum annealing offers a novel approach to finding the optimal solutions for a variety of computational problems, where the quantum annealing controls influence the observed performance and error mechanisms by tuning the underlying…

Quantum Physics · Physics 2021-01-13 Erica Grant , Travis Humble , Benjamin Stump

To increase efficiency in automotive manufacturing, newly produced vehicles can move autonomously from the production line to the distribution area. This requires an optimal placement of sensors to ensure full coverage while minimizing the…

Emerging Technologies · Computer Science 2025-07-23 Nico Kraus , Marvin Erdmann , Alexander Kuzmany , Daniel Porawski , Jonas Stein

The recent availability of quantum annealers as cloud-based services has enabled new ways to handle machine learning problems, and several relevant algorithms have been adapted to run on these devices. In a recent work, linear regression…

Quantum Physics · Physics 2025-03-18 Costantino Carugno , Maurizio Ferrari Dacrema , Paolo Cremonesi

Quantum annealing has the potential to find low energy solutions of NP-hard problems that can be expressed as quadratic unconstrained binary optimization problems. However, the hardware of the quantum annealer manufactured by D-Wave…

Quantum Physics · Physics 2024-01-22 Elijah Pelofske , Georg Hahn , Hristo N. Djidjev

Quantum computing is developing fast. Real world applications are within reach in the coming years. One of the most promising areas is combinatorial optimisation, where the Quadratic Unconstrained Binary Optimisation (QUBO) problem…

Quantum Physics · Physics 2020-07-06 Frank Phillipson , Irina Chiscop

The D-Wave quantum annealer has emerged as a novel computational architecture that is attracting significant interest, but there have been only a few practical algorithms exploiting the power of quantum annealers. Here we present a model…

Mesoscale and Nanoscale Physics · Physics 2020-02-05 Daisuke Inoue , Hiroaki Yoshida

Cybersecurity in telecommunication networks often leads to hard combinatorial optimization problems that are challenging to solve with classical methods. This work investigates the practical feasibility of using quantum annealing to address…

Quantum Physics · Physics 2026-01-05 Ali Abbassi , Yann Dujardin , Eric Gourdin , Philippe Lacomme , Caroline Prodhon
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