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We extend the qubit-efficient encoding presented in [Tan et al., Quantum 5, 454 (2021)] and apply it to instances of the financial transaction settlement problem constructed from data provided by a regulated financial exchange. Our methods…

Quantum Physics · Physics 2024-09-04 Elias X. Huber , Benjamin Y. L. Tan , Paul R. Griffin , Dimitris G. Angelakis

Financial markets are complex environments that produce enormous amounts of noisy and non-stationary data. One fundamental problem is online portfolio selection, the goal of which is to exploit this data to sequentially select portfolios of…

Machine Learning · Statistics 2019-08-23 Favour M. Nyikosa , Michael A. Osborne , Stephen J. Roberts

The variational quantum power method (VQPM), which adapts the classical power iteration algorithm for quantum settings, has shown promise for eigenvector estimation and optimization on quantum hardware. In this work, we provide a…

Quantum Physics · Physics 2026-01-26 Ammar Daskin

The quantum approximate optimization algorithm (QAOA) is a promising quantum-classical hybrid technique to solve combinatorial optimization problems in near-term gate-based noisy quantum devices. In QAOA, the objective is a function of the…

Quantum Physics · Physics 2019-07-24 Mahabubul Alam , Abdullah Ash-Saki , Swaroop Ghosh

We use an optimization procedure based on simulated bifurcation (SB) to solve the integer portfolio and trading trajectory problem with an unprecedented computational speed. The underlying algorithm is based on a classical description of…

Computational Finance · Quantitative Finance 2020-09-18 Kyle Steinhauer , Takahisa Fukadai , Sho Yoshida

Portfolio management issues have been extensively studied in the field of artificial intelligence in recent years, but existing deep learning-based quantitative trading methods have some areas where they could be improved. First of all, the…

Computational Finance · Quantitative Finance 2024-02-27 Qishuo Cheng , Le Yang , Jiajian Zheng , Miao Tian , Duan Xin

Constrained optimization problems are ubiquitous in science and industry. Quantum algorithms have shown promise in solving optimization problems, yet none of the current algorithms can effectively handle arbitrary constraints. We introduce…

We introduce a new scheme for quantum circuit design called controlled gate networks. Rather than trying to reduce the complexity of individual unitary operations, the new strategy is to toggle between all of the unitary operations needed…

We investigate the use of quantum computers for building a portfolio out of a universe of U.S. listed, liquid equities that contains an optimal set of stocks. Starting from historical market data, we look at various problem formulations on…

General Finance · Quantitative Finance 2020-07-06 Jeffrey Cohen , Alex Khan , Clark Alexander

We present a quantum alternating operator ansatz (QAOA$^+$) that solves a class of linearly constrained optimization problems by evolving a quantum state within a Hilbert subspace of feasible problem solutions. Our main focus is on a class…

Quantum Physics · Physics 2024-09-30 Brayden Goldstein-Gelb , Phillip C. Lotshaw

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

This work introduces a novel approach to price rainbow options, a type of path-independent multi-asset derivatives, with quantum computers. Leveraging the Iterative Quantum Amplitude Estimation method, we present an end-to-end quantum…

The quantum approximate optimization algorithm (QAOA) has been introduced as a heuristic digital quantum computing scheme to find approximate solutions of combinatorial problems with shallow circuits. We present a scheme to parallelize this…

Quantum Physics · Physics 2018-03-02 Wolfgang Lechner

Noisy intermediate-scale quantum (NISQ) hardware is almost universally incompatible with full-scale optimization problems of practical importance which can have many variables and unwieldy objective functions. As a consequence, there is a…

Quantum Physics · Physics 2022-05-10 Sean J. Weinberg , Fabio Sanches , Takanori Ide , Kazumitzu Kamiya , Randall Correll

Variational quantum algorithms exploit the features of superposition and entanglement to optimize a cost function efficiently by manipulating the quantum states. They are suitable for noisy intermediate-scale quantum (NISQ) computers that…

Quantum Physics · Physics 2023-08-29 Yunya Liu , Jiakun Liu , Jordan R. Raney , Pai Wang

A key open question in quantum computing is whether quantum algorithms can potentially offer a significant advantage over classical algorithms for tasks of practical interest. Understanding the limits of classical computing in simulating…

Quantum Physics · Physics 2021-06-23 Matija Medvidovic , Giuseppe Carleo

Efficiently integrating renewable resources into electricity markets is vital for addressing the challenges of matching real-time supply and demand while reducing the significant energy wastage resulting from curtailments. To address this…

Machine Learning · Computer Science 2024-06-21 Ciaran O'Connor , Joseph Collins , Steven Prestwich , Andrea Visentin

Since simulating quantum computers requires exponentially more classical resources, efficient algorithms are extremely helpful. We analyze algorithms that create single qubit and specific controlled qubit matrix representations of gates.…

Quantum Physics · Physics 2007-05-23 Eric Hsu

Quantum computing is becoming strategically relevant to finance because several core financial bottlenecks are already defined by combinatorial search, expectation estimation, rare-event analysis, representation learning, and long-horizon…

Computational Finance · Quantitative Finance 2026-04-10 Hui Gong , Akash Sedai , Thomas Schroeder , Francesca Medda

Regression testing is key in verifying that software works correctly after changes. However, running the entire regression test suite can be impractical and expensive, especially for large-scale systems. Test suite optimization methods are…

Quantum Physics · Physics 2025-05-01 Antonio Trovato , Martin Beseda , Dario Di Nucci
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