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The Traveling Salesman Problem (TSP) is one of the most often-used NP-Hard problems in computer science to study the effectiveness of computing models and hardware platforms. In this regard, it is also heavily used as a vehicle to study the…

We describe a quantum variational algorithm for securities transactions settlement optimization, based on a novel mathematical formalization of the problem that includes the most relevant constraints considered in the pan-European…

Financial market prediction and optimal trading strategy development remain challenging due to market complexity and volatility. Our research in quantum finance and reinforcement learning for decision-making demonstrates the approach of…

Quantum Physics · Physics 2025-01-24 Siddhant Dutta , Nouhaila Innan , Alberto Marchisio , Sadok Ben Yahia , Muhammad Shafique

Noisy and Intermediate-Scale Quantum, or NISQ, processors are sensitive to noise, prone to quantum decoherence, and are not yet capable of continuous quantum error correction for fault-tolerant quantum computation. Hence, quantum algorithms…

The presence of stochastic elements in combinatorial optimization problems makes them particularly challenging, as such problems quickly become intractable for classical computers even at relatively small sizes. In this work, we propose a…

In this paper, we document a novel machine learning based bottom-up approach for static and dynamic portfolio optimization on, potentially, a large number of assets. The methodology applies to general constrained optimization problems and…

Mathematical Finance · Quantitative Finance 2020-11-24 Qing Yang , Zhenning Hong , Ruyan Tian , Tingting Ye , Liangliang Zhang

A novel class of hybrid quantum-classical algorithms based on the variational approach have recently emerged from separate proposals addressing, for example, quantum chemistry and combinatorial problems. These algorithms provide an…

Quantum Physics · Physics 2017-01-09 Gian Giacomo Guerreschi , Mikhail Smelyanskiy

We investigate how and when to diversify capital over assets, i.e., the portfolio selection problem, from a signal processing perspective. To this end, we first construct portfolios that achieve the optimal expected growth in i.i.d.…

Portfolio Management · Quantitative Finance 2012-07-18 Sait Tunc , Mehmet A. Donmez , Suleyman S. Kozat

We experimentally investigate the viability of a variational quantum gate optimization protocol informed by the underlying physical Hamiltonian of fixed-frequency transmon qubits. The utility of the scheme is demonstrated through the…

Quantum Physics · Physics 2024-07-02 Sean Greenaway , Francesco Petiziol , Hongzheng Zhao , Florian Mintert

Crypto-currency markets are known to exhibit inefficiencies, which presents opportunities for profitable cyclic transactions or arbitrage, where one currency is traded for another in a way that results in a net gain without incurring any…

Quantum Physics · Physics 2023-08-04 Gines Carrascal , Beatriz Roman , Guillermo Botella , Alberto del Barrio

The paper presents an advanced version of an adaptive market-making agent capable of performing experiential learning, exploiting a "try and fail" approach relying on a swarm of subordinate agents executed in a virtual environment to…

Computational Engineering, Finance, and Science · Computer Science 2023-03-07 Anton Kolonin , Alexey Glushchenko , Arseniy Fokin , Marcello Mari , Mario Casiraghi , Mukul Vishwas

The performance of the quantum approximate optimization algorithm is evaluated by using three different measures: the probability of finding the ground state, the energy expectation value, and a ratio closely related to the approximation…

Quantum Physics · Physics 2020-06-08 Madita Willsch , Dennis Willsch , Fengping Jin , Hans De Raedt , Kristel Michielsen

We propose a faster digital quantum algorithm for portfolio optimization using the digitized-counterdiabatic quantum optimization (DCQO) paradigm in the impulse regime, that is, where the counterdiabatic terms are dominant. Our approach…

This paper aims to implement and evaluate the performance of quantum computing on solving combinatorial optimization problems arising from the operations of the power grid. To this end, we construct a novel mixed integer conic programming…

Systems and Control · Electrical Eng. & Systems 2022-08-17 Phuong Ngo , Christan Thomas , Hieu Nguyen , Abdullah Eroglu , Konstantinos Oikonomou

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

Machine Learning algorithms and Neural Networks are widely applied to many different areas such as stock market prediction, face recognition and population analysis. This paper will introduce a strategy based on the classic Deep…

Portfolio Management · Quantitative Finance 2020-03-16 Ziming Gao , Yuan Gao , Yi Hu , Zhengyong Jiang , Jionglong Su

Optimizing of a portfolio of financial assets is a critical industrial problem which can be approximately solved using algorithms suitable for quantum processing units (QPUs). We benchmark the success of this approach using the Quantum…

Quantum Physics · Physics 2022-02-15 Jack S. Baker , Santosh Kumar Radha

We investigate the performance of the variational quantum eigensolver (VQE) for the optimal flight gate assignment problem. This problem is a combinatorial optimization problem that aims at finding an optimal assignment of flights to the…

Quantum Portfolios of quantum algorithms encoded on qbits have recently been reported. In this paper a discussion of the continuous variables version of quantum portfolios is presented. A risk neutral valuation model for options dependent…

General Finance · Quantitative Finance 2015-03-14 Fredrick Michael

This paper studies a type of periodic utility maximization problems for portfolio management in incomplete stochastic factor models with convex trading constraints. The portfolio performance is periodically evaluated on the relative ratio…

Mathematical Finance · Quantitative Finance 2024-11-22 Wenyuan Wang , Kaixin Yan , Xiang Yu