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Combinatorial optimization is a fundamental challenge in various domains, with portfolio optimization standing out as a key application in finance. Despite numerous quantum algorithmic approaches proposed for this problem, most overlook a…

Portfolio Optimization (PO) is a financial problem aiming to maximize the net gains while minimizing the risks in a given investment portfolio. The novelty of Quantum algorithms lies in their acclaimed potential and capability to solve…

Quantum Physics · Physics 2024-07-30 Kamila Zaman , Alberto Marchisio , Muhammad Kashif , Muhammad Shafique

This paper experimentally investigates the behavior of analog quantum computers such as commercialized by D-Wave when confronted to instances of the maximum cardinality matching problem specifically designed to be hard to solve by means of…

Quantum Physics · Physics 2019-10-14 Daniel Vert , Renaud Sirdey , Stéphane Louise

Quantum computation offers exciting new possibilities for statistics. This paper explores the use of the D-Wave machine, a specialized type of quantum computer, which performs quantum annealing. A general description of quantum annealing…

Computation · Statistics 2019-11-21 Robert C. Foster , Brian Weaver , James Gattiker

We present a scalable, hardware-aware methodology for extending the Variational Quantum Eigensolver (VQE) to large, realistic Dynamic Portfolio Optimization (DPO) problems. Building on the scaling strategy from our previous work, where we…

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

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

We present a hybrid classical-quantum framework for portfolio construction and rebalancing. Asset selection is performed using Ledoit-Wolf shrinkage covariance estimation combined with hierarchical correlation clustering to extract n = 10…

Portfolio Management · Quantitative Finance 2026-03-19 Abraham Itzhak Weinberg

We discuss how quantum computation can be applied to financial problems, providing an overview of current approaches and potential prospects. We review quantum optimization algorithms, and expose how quantum annealers can be used to…

Quantum Physics · Physics 2019-03-04 Roman Orus , Samuel Mugel , Enrique Lizaso

The logistic network design is an abstract optimization problem that, under the assumption of minimal cost, seeks the optimal configuration of the supply chain's infrastructures and facilities based on customer demand. Key economic…

Quantum Physics · Physics 2021-02-04 Yongcheng Ding , Xi Chen , Lucas Lamata , Enrique Solano , Mikel Sanz

Tracking a financial index boils down to replicating its trajectory of returns for a well-defined time span by investing in a weighted subset of the securities included in the benchmark. Picking the optimal combination of assets becomes a…

Quantum Physics · Physics 2021-10-22 Samuel Fernández-Lorenzo , Diego Porras , Juan José García-Ripoll

Quantum annealing promises to solve complex combinatorial optimization problems faster than current transistor-based computer technologies. Although to date only one commercially-available quantum annealer is procurable, one can already…

Quantum Physics · Physics 2018-06-21 Helmut G. Katzgraber

Combinatorial optimization with a smooth and convex objective function arises naturally in applications such as discrete mean-variance portfolio optimization, where assets must be traded in integer quantities. Although optimal solutions to…

Quantum Physics · Physics 2025-10-14 Sebastian Schlütter , Tomislav Maras , Alexander Dotterweich , Nico Piatkowski

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

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

Quantum annealing has emerged as a powerful tool for solving combinatorial optimization problems efficiently, making use of the principles of quantum mechanics. Companies are increasingly investing in the market of quantum computers,…

Quantum Physics · Physics 2025-09-29 Lorenzo Mazzei , Giada Beccari , Mirko Laruina , Marco Cococcioni

One of the problems in quantitative finance that has received the most attention is the portfolio optimization problem. Regarding its solving, this problem has been approached using different techniques, with those related to quantum…

Artificial Intelligence · Computer Science 2023-09-28 Eneko Osaba , Guillaume Gelabert , Esther Villar-Rodriguez , Antón Asla , Izaskun Oregi

Financial markets are noisy yet contain a latent graph-theoretic structure that can be exploited for superior risk-adjusted returns. We propose a quantum stochastic walk (QSW) optimizer that embeds assets in a weighted graph: nodes…

Portfolio Management · Quantitative Finance 2026-02-05 Yen Jui Chang , Wei-Ting Wang , Yun-Yuan Wang , Chen-Yu Liu , Kuan-Cheng Chen , Ching-Ray Chang

Quantum annealing has emerged as a promising approach for solving NP-hard optimization problems, leveraging quantum phenomena such as quantum tunneling to navigate complex energy landscapes. However, the extent to which quantum tunneling…

Quantum Physics · Physics 2026-03-02 Vishwajeet Ohal , Pierre Boulanger

This work initiates research into the problem of determining an optimal investment strategy for investors with different attitudes towards the trade-offs of risk and profit. The probability distribution of the return values of the stocks…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Ming-Yang Kao , Andreas Nolte , Stephen R. Tate