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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

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

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…

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

Recently, several researchers proposed portfolio optimization as a potential use case for quantum optimization. However, the literature is lacking an extensive benchmark quantifying the potential of quantum computers for portfolio…

Quantum Physics · Physics 2025-09-23 Eric Stopfer , Friedrich Wagner

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…

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

We solve a multi-period portfolio optimization problem using D-Wave Systems' quantum annealer. We derive a formulation of the problem, discuss several possible integer encoding schemes, and present numerical examples that show high success…

Computational Finance · Quantitative Finance 2016-09-29 Gili Rosenberg , Poya Haghnegahdar , Phil Goddard , Peter Carr , Kesheng Wu , Marcos López de Prado

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

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

Recent advances in quantum hardware offer new approaches to solve various optimization problems that can be computationally expensive when classical algorithms are employed. We propose a hybrid quantum-classical algorithm to solve a dynamic…

Quantum Physics · Physics 2023-03-23 H. Xu , S. Dasgupta , A. Pothen , A. Banerjee

In this article we want to demonstrate the effectiveness of the new D-Wave quantum annealer, D-Wave 2000Q, in dealing with real world problems. In particular, it is shown how the quantum annealing process is able to find global optima even…

Quantum Physics · Physics 2018-08-28 Daniele Ottaviani , Alfonso Amendola

Quantum annealing is a method developed to solve combinatorial optimization problems by utilizing quantum bits. Solving such problems corresponds to minimizing a cost function defined over binary variables. However, in many practical cases,…

Quantum Physics · Physics 2025-06-26 Seiya Endo , Shohei Kawakatsu , Hiromichi Matsuyama , Kohei Suzuki , Yuichiro Matsuzaki

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…

Genetic algorithms, which mimic evolutionary processes to solve optimization problems, can be enhanced by using powerful semi-local search algorithms as mutation operators. Here, we introduce reverse quantum annealing, a class of quantum…

Quantum annealing is a heuristic quantum optimization algorithm that can be used to solve combinatorial optimization problems. In recent years, advances in quantum technologies have enabled the development of small- and intermediate-scale…

Quantum Physics · Physics 2022-10-05 Sheir Yarkoni , Elena Raponi , Thomas Bäck , Sebastian Schmitt

We briefly review various computational methods for the solution of optimization problems. First, several classical methods such as Metropolis algorithm and simulated annealing are discussed. We continue with a description of quantum…

Statistical Mechanics · Physics 2015-12-01 Eliahu Cohen , Boaz Tamir

In this paper we present a novel strategy to solve optimization problems within a hybrid quantum-classical scheme based on quantum annealing, with a particular focus on QUBO problems. The proposed algorithm is based on an iterative…

Quantum Physics · Physics 2020-04-07 Enrico Blanzieri , Davide Pastorello

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

This paper proposes a highly efficient quantum algorithm for portfolio optimisation targeted at near-term noisy intermediate-scale quantum computers. Recent work by Hodson et al. (2019) explored potential application of hybrid…

Quantum Physics · Physics 2021-07-29 N. Slate , E. Matwiejew , S. Marsh , J. B. Wang
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