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Portfolio optimization is a fundamental problem in finance that aims to determine the optimal allocation of assets within a portfolio to maximize returns while minimizing risk. It can be formulated as a Quadratic Unconstrained Binary…

Quantum Physics · Physics 2025-08-27 Anbang Wang , Zhonggang Lv , Zhenyuan Ma , Dunbo Cai , Zhihong Zhang

Quantum computers promise a qualitative speedup in solving a broad spectrum of practical optimization problems. The latter can be mapped onto the task of finding low-energy states of spin glasses, which is known to be exceedingly difficult.…

Disordered Systems and Neural Networks · Physics 2024-12-31 Hao Zhang , Kelly Boothby , Alex Kamenev

This paper investigates the experimental performance of a discrete portfolio optimization problem relevant to the financial services industry on the gate-model of quantum computing. We implement and evaluate a portfolio rebalancing use case…

Quantum Physics · Physics 2019-11-14 Mark Hodson , Brendan Ruck , Hugh Ong , David Garvin , Stefan Dulman

This work explores the potential of the Variational Quantum Eigensolver in solving Dynamic Portfolio Optimization problems surpassing the 100 qubit utility frontier. We systematically analyze how to scale this strategy in complexity and…

Optimizing the training of a machine learning pipeline helps in reducing training costs and improving model performance. One such optimizing strategy is quantum annealing, which is an emerging computing paradigm that has shown potential in…

Quantum Physics · Physics 2021-06-08 Rajdeep Kumar Nath , Himanshu Thapliyal , Travis S. Humble

Portfolio optimization is a primary component of the decision-making process in finance, aiming to tactfully allocate assets to achieve optimal returns while considering various constraints. Herein, we proposed a method that uses the…

Quantum Physics · Physics 2024-12-24 Chansreynich Huot , Kimleang Kea , Tae-Kyung Kim , Youngsun Han

Optimization of electricity surplus is a crucial element for transmission power networks to reduce costs and efficiently use the available electricity across the network. In this paper we showed how to optimize such a network with quantum…

Quantum Physics · Physics 2022-12-06 Giuseppe Colucci , Stan van der Linde , Frank Phillipson

Quantum annealing algorithms belong to the class of meta-heuristic tools, applicable for solving binary optimization problems. Hardware implementations of quantum annealing, such as the quantum processing units (QPUs) produced by D-Wave…

Quantum computers use quantum resources to carry out computational tasks and may outperform classical computers in solving certain computational problems. Special-purpose quantum computers such as quantum annealers employ quantum adiabatic…

Other Statistics · Statistics 2021-01-19 Xinyu Song , Yazhen Wang , Shang Wu , Donggyu Kim

The promise of quantum computing to open new unexplored possibilities in several scientific fields has been long discussed, but until recently the lack of a functional quantum computer has confined this discussion mostly to theoretical…

Information Retrieval · Computer Science 2021-10-12 Riccardo Nembrini , Maurizio Ferrari Dacrema , Paolo Cremonesi

Portfolio optimization is a routine asset management operation conducted in financial institutions around the world. However, under real-world constraints such as turnover limits and transaction costs, its formulation becomes a…

Disordered Systems and Neural Networks · Physics 2025-07-11 Nishan Ranabhat , Behnam Javanparast , David Goerz , Estelle Inack

We propose and compare Constraint Programming (CP) and Quantum Annealing (QA) approaches for rolling stock assignment optimisation considering necessary maintenance tasks. In the CP approach, we model the problem with an Alldifferent…

Artificial Intelligence · Computer Science 2023-09-26 Patricia Bickert , Cristian Grozea , Ronny Hans , Matthias Koch , Christina Riehn , Armin Wolf

Quantum Approximate Optimization Algorithms (QAOA) have demonstrated a strong potential in addressing graph-based optimization problems. However, the execution of large-scale quantum circuits remains constrained by the limitations of…

Quantum Physics · Physics 2025-06-11 Vicente P. Soloviev , Antonio Márquez Romero , Josh Kirsopp , Michal Krompiec

We report the Atos Q-score for D-Wave's quantum devices, classical algorithms and hybrid quantum-classical solver. Computing the Q-score entails solving the Max-Cut problem for increasingly large graphs. This work presents the first…

Quantum Physics · Physics 2022-11-08 Ward van der Schoot , Daan Leermakers , Robert Wezeman , Niels Neumann , Frank Phillipson

In this work, we develop a new quantum algorithm to solve a combinatorial problem with significant practical relevance occurring in clutch manufacturing. It is demonstrated how quantum optimization can play a role in real industrial…

In this work we investigate the capabilities of a hybrid quantum-classical procedure to explore the solution space using the D-Wave $2000Q^{TM}$ Quantum Annealer device. Here we study the ability of the Quantum hardware to solve the Number…

Quantum Physics · Physics 2020-03-10 Luca Asproni , Davide Caputo , Blanca Silva , Giovanni Fazzi , Marco Magagnini

Portfolio optimization is a ubiquitous problem in financial mathematics that relies on accurate estimates of covariance matrices for asset returns. However, estimates of pairwise covariance could be better and calculating time-sensitive…

Portfolio Management · Quantitative Finance 2024-11-12 James S. Cummins , Natalia G. Berloff

We consider digitized-counterdiabatic quantum computing as an advanced paradigm to approach quantum advantage for industrial applications in the NISQ era. We apply this concept to investigate a discrete mean-variance portfolio optimization…

Quantum Physics · Physics 2022-12-29 N. N. Hegade , P. Chandarana , K. Paul , X. Chen , F. Albarrán-Arriagada , E. Solano

Quantum annealing is a proposed combinatorial optimization technique meant to exploit quantum mechanical effects such as tunneling and entanglement. Real-world quantum annealing-based solvers require a combination of annealing and classical…

Quantum Physics · Physics 2015-07-30 Kenneth M. Zick , Omar Shehab , Matthew French

Quantum annealing is a heuristic algorithm for solving combinatorial optimization problems, and D-Wave Systems Inc. has developed hardware for implementing this algorithm. The current version of the D-Wave quantum annealer can solve…

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