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We apply numerical dynamic programming techniques to solve discrete-time multi-asset dynamic portfolio optimization problems with proportional transaction costs and shorting/borrowing constraints. Examples include problems with multiple…

Portfolio Management · Quantitative Finance 2020-03-05 Yongyang Cai , Kenneth Judd , Rong Xu

Quantum computers leverage the principles of quantum mechanics to do computation with a potential advantage over classical computers. While a single classical computer transforms one particular binary input into an output after applying one…

Emerging Technologies · Computer Science 2025-03-17 Francisco Chicano , Gabiel Luque , Zakaria Abdelmoiz Dahi , Rodrigo Gil-Merino

Reinforcement learning studies how an agent should interact with an environment to maximize its cumulative reward. A standard way to study this question abstractly is to ask how many samples an agent needs from the environment to learn an…

Quantum Physics · Physics 2021-12-21 Daochen Wang , Aarthi Sundaram , Robin Kothari , Ashish Kapoor , Martin Roetteler

Quantum computers can execute algorithms that sometimes dramatically outperform classical computation. Undoubtedly the best-known example of this is Shor's discovery of an efficient quantum algorithm for factoring integers, whereas the same…

Quantum Physics · Physics 2017-08-23 Wim van Dam , Yoshitaka Sasaki

This paper presents a Quantum Reinforcement Learning (QRL) solution to the dynamic portfolio optimization problem based on Variational Quantum Circuits. The implemented QRL approaches are quantum analogues of the classical…

Machine Learning · Computer Science 2026-01-29 Vincent Gurgul , Ying Chen , Stefan Lessmann

Learning low dimensional representation is a crucial issue for many machine learning tasks such as pattern recognition and image retrieval. In this article, we present a quantum algorithm and a quantum circuit to efficiently perform…

Quantum Physics · Physics 2019-03-27 Bojia Duan , Jiabin Yuan , Juan Xu , Dan Li

The Portfolio Optimization task has long been studied in the Financial Services literature as a procedure to identify the basket of assets that satisfy desired conditions on the expected return and the associated risk. A well-known approach…

Quantum computing has the potential to surpass the capabilities of current classical computers when solving complex problems. Combinatorial optimization has emerged as one of the key target areas for quantum computers as problems found in…

Quantum Physics · Physics 2023-07-27 Juan Giraldo , José Ossorio , Norha M. Villegas , Gabriel Tamura , Ulrike Stege

We introduce a quantum approximate optimization algorithm (QAOA) for continuous optimization. The algorithm is based on the dynamics of a quantum system moving in an energy potential which encodes the objective function. By approximating…

Quantum Physics · Physics 2019-02-04 Guillaume Verdon , Juan Miguel Arrazola , Kamil Brádler , Nathan Killoran

Recent results by Harrow et. al. and by Ta-Shma, suggest that quantum computers may have an exponential advantage in solving a wealth of linear algebraic problems, over classical algorithms. Building on the quantum intuition of these…

Quantum Physics · Physics 2017-04-07 Michael Ben-Or , Lior Eldar

In the problem of online portfolio selection as formulated by Cover (1991), the trader repeatedly distributes her capital over $ d $ assets in each of $ T > 1 $ rounds, with the goal of maximizing the total return. Cover proposed an…

Optimization and Control · Mathematics 2025-03-11 Rémi Jézéquel , Dmitrii M. Ostrovskii , Pierre Gaillard

Benchmarking the performance of quantum optimization algorithms is crucial for identifying utility for industry-relevant use cases. Benchmarking processes vary between optimization applications and depend on user-specified goals. The…

We explore the near-term intersection of quantum computing with the transport sector. To support near-term integration, we introduce a framework for assessing the suitability of transport optimization problems for obtaining potential…

We investigate the feasibility of integrating quantum algorithms as subroutines of simulation-based optimisation problems with relevance to and potential applications in mathematical finance. To this end, we conduct a thorough analysis of…

Quantum optimization allows for up to exponential quantum speedups for specific, possibly industrially relevant problems. As the key algorithm in this field, we motivate and discuss the Quantum Approximate Optimization Algorithm (QAOA),…

Quantum Physics · Physics 2025-11-18 Jonas Stein , Maximilian Zorn , Leo Sünkel , Thomas Gabor

This paper presents a quantum approach for the formulation and solution of the prosumer problem, i.e., the problem of minimizing the energy cost incurred by a number of users in an energy community, while addressing the constraints given by…

Quantum Physics · Physics 2023-02-01 Carlo Mastroianni , Luigi Scarcello , Jacopo Settino

Portfolio diversification is one of the most effective ways to minimize investment risk. Individuals and fund managers aim to create a portfolio of assets that not only have high returns but are also uncorrelated. This goal can be achieved…

Computational Engineering, Finance, and Science · Computer Science 2021-12-17 Moein Owhadi-Kareshk , Pierre Boulanger

Quantum computers are expected to surpass the computational capabilities of classical computers during this decade and have transformative impact on numerous industry sectors, particularly finance. In fact, finance is estimated to be the…

Quantum Physics · Physics 2022-06-29 Dylan Herman , Cody Googin , Xiaoyuan Liu , Alexey Galda , Ilya Safro , Yue Sun , Marco Pistoia , Yuri Alexeev

Quantum computing could impact various industries, with the automotive industry with many computational challenges, from optimizing supply chains and manufacturing to vehicle engineering, being particularly promising. This chapter…

Optimizing the mRNA codon has an essential impact on gene expression for a specific target protein. It is an NP-hard problem; thus, exact solutions to such optimization problems become computationally intractable for realistic problem sizes…

Quantum Physics · Physics 2024-05-13 Hongfeng Zhang , Aritra Sarkar , Koen Bertels