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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

Quantum annealers (QAs) are specialized quantum computers that minimize objective functions over discrete variables by physically exploiting quantum effects. Current QA platforms allow for the optimization of quadratic objectives defined…

Emerging Technologies · Computer Science 2018-11-07 Zhengbing Bian , Fabian Chudak , William Macready , Aidan Roy , Roberto Sebastiani , Stefano Varotti

Node embedding is a key technique for representing graph nodes as vectors while preserving structural and relational properties, which enables machine learning tasks like feature extraction, clustering, and classification. While classical…

Quantum Physics · Physics 2025-03-11 Hristo N. Djidjev

Hybrid quantum-classical algorithms can help mitigating the physical limitations of current quantum devices, particularly the low qubit count and the reduced topological connectivity. In this paper, we propose a hybrid technique to solve a…

Quantum Physics · Physics 2026-05-12 Siwei Hu , Victor Lopata , Salvatore Sinno , Shruthi Thuravakkath , Paolo Zuliani

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

This study combines simulated annealing with delta evaluation to solve the joint stratification and sample allocation problem. In this problem, atomic strata are partitioned into mutually exclusive and collectively exhaustive strata. Each…

Artificial Intelligence · Computer Science 2021-11-23 Mervyn O'Luing , Steven Prestwich , S. Armagan Tarim

We present an algorithm for quantum-assisted cluster analysis (QACA) that makes use of the topological properties of a D-Wave 2000Q quantum processing unit (QPU). Clustering is a form of unsupervised machine learning, where instances are…

Quantum Physics · Physics 2018-03-09 Florian Neukart , David Von Dollen , Christian Seidel

Quantum Annealing, or Quantum Stochastic Optimization, is a classical randomized algorithm which provides good heuristics for the solution of hard optimization problems. The algorithm, suggested by the behaviour of quantum systems, is an…

Quantum Physics · Physics 2011-07-06 Diego de Falco , Dario Tamascelli

We developed a new quantum annealing (QA) algorithm for Dirichlet process mixture (DPM) models based on the Chinese restaurant process (CRP). QA is a parallelized extension of simulated annealing (SA), i.e., it is a parallel stochastic…

Disordered Systems and Neural Networks · Physics 2013-09-10 Issei Sato , Shu Tanaka , Kenichi Kurihara , Seiji Miyashita , Hiroshi Nakagawa

The Traveling Salesman Problem is a classical NP-hard combinatorial optimization problem that has been extensively studied in operations research. A major challenge in Traveling Salesman Problem formulations is the large number of subtour…

Quantum Physics · Physics 2026-04-23 Alessia Ciacco , Luigi Di Puglia Pugliese , Francesca Guerriero

Over the past decade, the usefulness of quantum annealing hardware for combinatorial optimization has been the subject of much debate. Thus far, experimental benchmarking studies have indicated that quantum annealing hardware does not…

Optimization and Control · Mathematics 2022-10-11 Byron Tasseff , Tameem Albash , Zachary Morrell , Marc Vuffray , Andrey Y. Lokhov , Sidhant Misra , Carleton Coffrin

Quantum annealing (QA) has emerged as a powerful technique to solve optimization problems by taking advantages of quantum physics. In QA process, a bottleneck that may prevent QA to scale up is minor embedding step in which we embed…

Quantum Physics · Physics 2023-07-06 Hoang M. Ngo , Tamer Kahveci , My T. Thai

Quantum annealing is a heuristic algorithm for searching the ground state of an Ising model. Heuristic algorithms aim to obtain near-optimal solutions with a reasonable computation time. Accordingly, many algorithms have so far been…

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

Quantum annealing technologies aim to solve computational optimization and sampling problems. QPU (Quantum Processing Unit) machines such as the D-Wave system use the QUBO (Quadratic Unconstrained Binary Optimization) formula to define…

Quantum Physics · Physics 2022-03-28 Toufan D. Tambunan , Andriyan B. Suksmono , Ian J. M. Edward , Rahmat Mulyawan

Several combinatorial optimization problems can be solved with NISQ devices once that a corresponding quadratic unconstrained binary optimization (QUBO) form is derived. The aim of this work is to drastically reduce the variables needed for…

Quantum Physics · Physics 2026-02-25 Dario De Santis , Salvatore Tirone , Stefano Marmi , Vittorio Giovannetti

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 standard approach to encoding constraints in quantum optimization is the quadratic penalty method. Quadratic penalties introduce additional couplings and energy scales, which can be detrimental to the performance of a quantum optimizer.…

Quantum Physics · Physics 2024-12-17 Puya Mirkarimi , David C. Hoyle , Ross Williams , Nicholas Chancellor

We introduce the strongly NP-complete pagination problem, an extension of BIN PACKING where packing together two items may make them occupy less volume than the sum of their individual sizes. To achieve this property, an item is defined as…

Data Structures and Algorithms · Computer Science 2017-09-06 Aristide Grange , Imed Kacem , Sébastien Martin

Quantum adiabatic optimization seeks to solve combinatorial problems using quantum dynamics, requiring the Hamiltonian of the system to align with the problem of interest. However, these Hamiltonians are often incompatible with the native…

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
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