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Recent advances in quantum technology have led to the development and manufacturing of experimental programmable quantum annealing optimizers that contain hundreds of quantum bits. These optimizers, named `D-Wave' chips, promise to solve…

Quantum Physics · Physics 2015-10-23 Victor Martin-Mayor , Itay Hen

The efficient and effective construction of portfolios that adhere to real-world constraints is a challenging optimization task in finance. We investigate a concrete representation of the problem with a focus on design proposals of an…

Quantum algorithms have gained increasing attention for addressing complex combinatorial problems in finance, notably portfolio optimization. This study systematically benchmarks two prominent variational quantum approaches, Variational…

Quantum Physics · Physics 2025-12-05 Nouhaila Innan , Ayesha Saleem , Alberto Marchisio , Muhammad Shafique

Portfolio optimization plays a central role in finance to obtain optimal portfolio allocations that aim to achieve certain investment goals. Over the years, many works have investigated different variants of portfolio optimization.…

Quantum Physics · Physics 2023-02-01 Debbie Lim , Patrick Rebentrost

Portfolio optimization is an inseparable part of strategic asset allocation at the Czech National Bank. Quantum computing is a new technology offering algorithms for that problem. The capabilities and limitations of quantum computers with…

General Economics · Economics 2023-03-06 Martin Vesely

A quantum-inspired optimization approach is proposed to study the portfolio optimization aimed at selecting an optimal mix of assets based on the risk-return trade-off to achieve the desired goal in investment. By integrating conventional…

Portfolio Management · Quantitative Finance 2024-11-15 Ying-Chang Lu , Chao-Ming Fu , Lien-Po Yu , Yen-Jui Chang , Ching-Ray Chang

In the current NISQ-era, one of the major challenges faced by researchers and practitioners lies in figuring out how to combine quantum and classical computing in the most efficient and innovative way. In this paper, we present a mechanism…

Emerging Technologies · Computer Science 2024-10-02 Eneko Osaba , Esther Villar-Rodriguez , Antón Asla

Portfolio optimization is one of the most studied problems for demonstrating the near-term applications of quantum computing. However, large-scale problems cannot be solved on today's quantum hardware. In this work, we extend upon a study…

Quantum Physics · Physics 2023-05-03 Naman Jain , M Girish Chandra

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…

Advancements in quantum computing are fuelling emerging applications across disciplines, including finance, where quantum and quantum-inspired algorithms can now make market predictions, detect fraud, and optimize portfolios. Expanding this…

Quantum Physics · Physics 2023-01-06 Anna G. Hughes , Jack S. Baker , Santosh Kumar Radha

This work is a benchmark study for quantum-classical computing method with a real-world optimization problem from industry. The problem involves scheduling and balancing jobs on different machines, with a non-linear objective function. We…

Quantum Physics · Physics 2024-08-06 Abhishek Awasthi , Nico Kraus , Florian Krellner , David Zambrano

The observation of an unequivocal quantum speedup remains an elusive objective for quantum computing. The D-Wave quantum annealing processors have been at the forefront of experimental attempts to address this goal, given their relatively…

Quantum Physics · Physics 2018-08-08 Tameem Albash , Daniel A. Lidar

Academic and industrial sectors have been engaged in a fierce competition to develop quantum technologies, fueled by the explosive advancements in quantum hardware. While universal quantum computers have been shown to support up to hundreds…

Quantum Physics · Physics 2024-07-04 Amedeo Bertuzzi , Davide Ferrari , Antonio Manzalini , Michele Amoretti

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

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 algorithms belong to the class of metaheuristic tools, applicable for solving binary optimization problems. Hardware implementations of quantum annealing, such as the quantum annealing machines produced by D-Wave Systems,…

Quantum Physics · Physics 2017-09-18 Florian Neukart , David Von Dollen , Christian Seidel , Gabriele Compostella

Portfolio optimization is an important process in finance that consists in finding the optimal asset allocation that maximizes expected returns while minimizing risk. When assets are allocated in discrete units, this is a combinatorial…

Statistical Mechanics · Physics 2022-10-04 Álvaro Rubio-García , Juan José García-Ripoll , Diego Porras

Quantum computing is rapidly advancing, harnessing the power of qubits' superposition and entanglement for computational advantages over classical systems. However, scalability poses a primary challenge for these machines. By implementing a…

We present a detailed study of portfolio optimization using different versions of the quantum approximate optimization algorithm (QAOA). For a given list of assets, the portfolio optimization problem is formulated as quadratic binary…

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