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We investigate a hybrid quantum-classical solution method to the mean-variance portfolio optimization problems. Starting from real financial data statistics and following the principles of the Modern Portfolio Theory, we generate…

Quantum Physics · Physics 2019-07-01 Davide Venturelli , Alexei Kondratyev

Recently, several researchers proposed portfolio optimization as a potential use case for quantum optimization. However, the literature is lacking an extensive benchmark quantifying the potential of quantum computers for portfolio…

Quantum Physics · Physics 2025-09-23 Eric Stopfer , Friedrich Wagner

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

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 is a heuristic quantum optimization algorithm that can be used to solve combinatorial optimization problems. In recent years, advances in quantum technologies have enabled the development of small- and intermediate-scale…

Quantum Physics · Physics 2022-10-05 Sheir Yarkoni , Elena Raponi , Thomas Bäck , Sebastian Schmitt

One of the problems frequently mentioned as a candidate for quantum advantage is that of selecting a portfolio of financial assets to maximize returns while minimizing risk. In this paper we formulate several real-world constraints for use…

Materials Science · Physics 2022-03-10 Salvatore Certo , Anh Dung Pham , Daniel Beaulieu

The quest for real-time dynamic optimization solutions in the process industry represents a formidable computational challenge, particularly within the realm of applications like model-predictive control, where rapid and reliable…

Optimization and Control · Mathematics 2024-04-29 Dennis Michael Nenno , Adrian Caspari

We study the effect of the anneal path control per qubit, a new user control feature offered on the D-Wave 2000Q quantum annealer, on the performance of quantum annealing for solving optimization problems by numerically solving the…

Combinatorial optimization is anticipated to be one of the primary use cases for quantum computation in the coming years. The Quantum Approximate Optimization Algorithm (QAOA) and Quantum Annealing (QA) can potentially demonstrate…

In this note, we describe an experiment on portfolio optimization using the Quadratic Unconstrained Binary Optimization (QUBO) formulation. The dataset we use is taken from a real-world problem for which a classical solution is currently…

Quantum annealing is a heuristic optimization algorithm that exploits quantum evolution to approximately find lowest energy states. Quantum annealers have scaled up in recent years to tackle increasingly larger and more highly connected…

Quantum Physics · Physics 2025-07-04 Humberto Munoz Bauza , Daniel A. Lidar

The application of quantum annealing to the optimization of continuous-variable functions is a relatively unexplored area of research. We test the performance of quantum annealing applied to a one-dimensional continuous-variable function…

Quantum Physics · Physics 2023-10-06 Shunta Arai , Hiroki Oshiyama , Hidetoshi Nishimori

Quantum annealing (QA) has the potential to significantly improve solution quality and reduce time complexity in solving combinatorial optimization problems compared to classical optimization methods. However, due to the limited number of…

Quantum Physics · Physics 2025-04-09 Seongmin Kim , Sang-Woo Ahn , In-Saeng Suh , Alexander W. Dowling , Eungkyu Lee , Tengfei Luo

The presence of a bias field, encoding some information about the target state, can enhance the performance of quantum optimization methods. Here we investigate the effect of such a bias field on the outcome of quantum annealing sampling,…

Quantum Physics · Physics 2022-10-19 Tobias Graß

To increase efficiency in automotive manufacturing, newly produced vehicles can move autonomously from the production line to the distribution area. This requires an optimal placement of sensors to ensure full coverage while minimizing the…

Emerging Technologies · Computer Science 2025-07-23 Nico Kraus , Marvin Erdmann , Alexander Kuzmany , Daniel Porawski , Jonas Stein

Quantum annealing is a generic algorithm using quantum-mechanical fluctuations to search for the solution of an optimization problem. The present paper first reviews the fundamentals of quantum annealing and then reports on preliminary…

Disordered Systems and Neural Networks · Physics 2010-06-10 Masayuki Ohzeki , Hidetoshi Nishimori

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

Quantum annealing is a computational paradigm in which optimisation problems are mapped onto the energy landscape of an interacting quantum system and explored through its dynamical evolution. By continuously transforming a simple initial…

Quantum Physics · Physics 2026-05-11 Steven Abel , Andrei Constantin , Luca A. Nutricati

We solve a multi-period portfolio optimization problem using D-Wave Systems' quantum annealer. We derive a formulation of the problem, discuss several possible integer encoding schemes, and present numerical examples that show high success…

Computational Finance · Quantitative Finance 2016-09-29 Gili Rosenberg , Poya Haghnegahdar , Phil Goddard , Peter Carr , Kesheng Wu , Marcos López de Prado

In this paper, we review some features of quantum annealing and related topics from viewpoints of statistical physics, condensed matter physics, and computational physics. We can obtain a better solution of optimization problems in many…

Disordered Systems and Neural Networks · Physics 2017-08-23 Shu Tanaka , Ryo Tamura
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