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Quantum annealers have been designed to propose near-optimal solutions to NP-hard optimization problems. However, the accuracy of current annealers such as the ones of D-Wave Systems, Inc., is limited by environmental noise and hardware…

Quantum Physics · Physics 2022-10-27 Aaron Barbosa , Elijah Pelofske , Georg Hahn , Hristo N. Djidjev

Quantum annealing is a generic name of quantum algorithms to use quantum-mechanical fluctuations to search for the solution of optimization problem. It shares the basic idea with quantum adiabatic evolution studied actively in quantum…

Quantum Physics · Physics 2009-11-13 Satoshi Morita , Hidetoshi Nishimori

We present the mapping of a class of simplified air traffic management (ATM) problems (strategic conflict resolution) to quadratic unconstrained boolean optimization (QUBO) problems. The mapping is performed through an original…

The 2008 mortgage crisis is an example of an extreme event. Extreme value theory tries to estimate such tail risks. Modern finance practitioners prefer Expected Shortfall based risk metrics (which capture tail risk) over traditional…

Risk Management · Quantitative Finance 2020-09-16 Samudra Dasgupta , Arnab Banerjee

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

The study of optimal control of quantum annealing by modulating the pace of evolution and by introducing a counterdiabatic potential has gained significant attention in recent times. In this work, we present a numerical approach based on…

We develop a quantum algorithm to solve combinatorial optimization problems through quantum simulation of a classical annealing process. Our algorithm combines techniques from quantum walks, quantum phase estimation, and quantum Zeno…

Quantum Physics · Physics 2007-12-07 R. Somma , S. Boixo , H. Barnum

Quantum computing, along with quantum metrology and quantum communication, are disruptive technologies that promise, in the near future, to impact different sectors of academic research and industry. Among the computational challenges with…

We propose a novel method for reducing the number of variables in quadratic unconstrained binary optimization problems, using a quantum annealer (or any sampler) to fix the value of a large portion of the variables to values that have a…

Quantum Physics · Physics 2017-09-26 Hamed Karimi , Gili Rosenberg

We present a quantum algorithm for portfolio optimisation. Specifically, We present an end-to-end quantum approximate optimisation algorithm (QAOA) to solve the discrete global minimum variance portfolio (DGMVP) model. This model finds a…

Quantum Physics · Physics 2024-10-22 Haomu Yuan , Christopher K. Long , Hugo V. Lepage , Crispin H. W. Barnes

We propose a new method for solving binary optimization problems under inequality constraints using a quantum annealer. To deal with inequality constraints, we often use slack variables, as in previous approaches. When we use slack…

Quantum Physics · Physics 2020-12-14 Kouki Yonaga , Masamichi J. Miyama , Masayuki Ohzeki

Portfolio optimization is an inseparable part of strategic asset allocation at the Czech National Bank. Quantum computing is a new technology offering algorithms for that problem. The capabilities and limitations of quantum computers with…

General Economics · Economics 2023-03-06 Martin Vesely

The Closest String Problem is an NP-complete problem which appears more commonly in bioinformatics and coding theory. Less surprisingly, classical approaches have been pursued with two prominent algorithms being the genetic algorithm and…

Quantum Physics · Physics 2023-10-20 Chandeepa Dissanayake

We demonstrate that the performance of a quantum annealer on hard random Ising optimization problems can be substantially improved using quantum annealing correction (QAC). Our error correction strategy is tailored to the D-Wave Two device.…

Quantum Physics · Physics 2015-04-03 Kristen L. Pudenz , Tameem Albash , Daniel A. Lidar

Quantum computing promises to solve difficult optimization problems in chemistry, physics and mathematics more efficiently than classical computers, but requires fault-tolerant quantum computers with millions of qubits. To overcome errors…

Databases · Computer Science 2021-07-23 Tobias Fankhauser , Marc E. Solèr , Rudolf M. Füchslin , Kurt Stockinger

We present a detailed study of portfolio optimization using different versions of the quantum approximate optimization algorithm (QAOA). For a given list of assets, the portfolio optimization problem is formulated as quadratic binary…

Portfolio optimization is a ubiquitous problem in financial mathematics that relies on accurate estimates of covariance matrices for asset returns. However, estimates of pairwise covariance could be better and calculating time-sensitive…

Portfolio Management · Quantitative Finance 2024-11-12 James S. Cummins , Natalia G. Berloff

We propose a hybrid quantum-classical approximate optimization algorithm for photonic quantum computing, specifically tailored for addressing continuous-variable optimization problems. Inspired by counterdiabatic protocols, our algorithm…

Quantum Physics · Physics 2024-10-03 Pranav Chandarana , Koushik Paul , Mikel Garcia-de-Andoin , Yue Ban , Mikel Sanz , Xi Chen

We propose a new kernel that quantifies success for the task of computing a core-periphery partition for an undirected network. Finding the associated optimal partitioning may be expressed in the form of a quadratic unconstrained binary…

Social and Information Networks · Computer Science 2022-01-06 Catherine F. Higham , Desmond J. Higham , Francesco Tudisco

In this work, we develop a new quantum algorithm to solve a combinatorial problem with significant practical relevance occurring in clutch manufacturing. It is demonstrated how quantum optimization can play a role in real industrial…