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Banks are required to set aside funds in their income statement, known as a loan loss provision (LLP), to account for potential loan defaults and expenses. By treating the LLP as a global constraint, we propose a hybrid quantum-classical…

Variational quantum algorithms are a leading candidate for early applications on noisy intermediate-scale quantum computers. These algorithms depend on a classical optimization outer-loop that minimizes some function of a parameterized…

Reinforcement learning is one of the most challenging learning paradigms where efficacy and efficiency gains are extremely valuable. Hierarchical reinforcement learning is a variant that leverages temporal abstraction to structure…

Machine Learning · Computer Science 2026-05-06 Yu-Ting Lee , Samuel Yen-Chi Chen , Fu-Chieh Chang

This paper investigates quantum machine learning to optimize the beamforming in a multiuser multiple-input single-output downlink system. We aim to combine the power of quantum neural networks and the success of classical deep neural…

Information Theory · Computer Science 2024-08-12 Juping Zhang , Gan Zheng , Toshiaki Koike-Akino , Kai-Kit Wong , Fraser Burton

This article explores search strategies for the design of parameterized quantum circuits. We propose several optimization approaches including random search plus survival of the fittest, reinforcement learning both with classical and hybrid…

Quantum Physics · Physics 2021-01-05 Mohammad Pirhooshyaran , Tamas Terlaky

We present a classical algorithm to find approximate solutions to instances of quadratic unconstrained binary optimisation. The algorithm can be seen as an analogue of quantum annealing under the restriction of a product state space, where…

Quantum Physics · Physics 2023-02-14 Joseph Bowles , Alexandre Dauphin , Patrick Huembeli , José Martinez , Antonio Acín

In this paper we apply a heuristic method based on artificial neural networks in order to trace out the efficient frontier associated to the portfolio selection problem. We consider a generalization of the standard Markowitz mean-variance…

Neural and Evolutionary Computing · Computer Science 2007-07-30 Alberto Fernandez , Sergio Gomez

Hybrid quantum-classical optimization using near-term quantum technology is an emerging direction for exploring quantum advantage in high-dimensional systems. However, precise characterization of all experimental parameters is often…

Quantum Physics · Physics 2019-10-11 Zhaoqi Leng , Pranav Mundada , Saeed Ghadimi , Andrew Houck

Emerging quantum processors provide an opportunity to explore new approaches for solving traditional problems in the post Moore's law supercomputing era. However, the limited number of qubits makes it infeasible to tackle massive real-world…

We propose a method for finding approximate compilations of quantum unitary transformations, based on techniques from policy gradient reinforcement learning. The choice of a stochastic policy allows us to rephrase the optimization problem…

Quantum Physics · Physics 2022-09-14 David A. Herrera-Martí

Among professionals and academics alike, it is well known that active portfolio management is unable to provide additional risk-adjusted returns relative to their benchmarks. For this reason, passive wealth management has emerged in recent…

Portfolio Management · Quantitative Finance 2022-03-28 Daniele Bufalo , Michele Bufalo , Francesco Cesarone , Giuseppe Orlando

This paper studies a distributionally robust portfolio optimization model with a cardinality constraint for limiting the number of invested assets. We formulate this model as a mixed-integer semidefinite optimization (MISDO) problem by…

Optimization and Control · Mathematics 2022-12-22 Ken Kobayashi , Yuichi Takano , Kazuhide Nakata

Combinatorial optimization is a promising application for near-term quantum computers, however, identifying performant algorithms suited to noisy quantum hardware remains as an important goal to potentially realizing quantum computational…

Quantum Physics · Physics 2025-04-01 Titus D. Morris , Ananth Kaushik , Martin Roetteler , Phillip C. Lotshaw

Quantum algorithms have the potential to enhance machine learning across a variety of domains and applications. In this work, we show how quantum machine learning can be used to improve financial forecasting. First, we use classical and…

Statistical Finance · Quantitative Finance 2024-04-05 Sohum Thakkar , Skander Kazdaghli , Natansh Mathur , Iordanis Kerenidis , André J. Ferreira-Martins , Samurai Brito

Quantum operations on pure states can be fully represented by unitary matrices. Variational quantum circuits, also known as quantum neural networks, embed data and trainable parameters into gate-based operations and optimize the parameters…

Quantum Physics · Physics 2026-04-09 Basil Kyriacou , Mo Kordzanganeh , Maniraman Periyasamy , Alexey Melnikov

Can near-term gate model based quantum processors offer quantum advantage for practical applications in the pre-fault tolerance noise regime? A class of algorithms which have shown some promise in this regard are the so-called…

Quantum Physics · Physics 2019-08-13 Guillaume Verdon , Michael Broughton , Jacob Biamonte

This paper addresses the importance of incorporating various risk measures in portfolio management and proposes a dynamic hybrid portfolio optimization model that combines the spectral risk measure and the Value-at-Risk in the mean-variance…

Portfolio Management · Quantitative Finance 2023-04-12 Weiping Wu , Yu Lin , Jianjun Gao , Ke Zhou

Quantum machine learning has established as an interdisciplinary field to overcome limitations of classical machine learning and neural networks. This is a field of research which can prove that quantum computers are able to solve problems…

Quantum Physics · Physics 2023-03-13 Meghashrita Das , Tirupati Bolisetti

We consider robust pricing and hedging for options written on multiple assets given market option prices for the individual assets. The resulting problem is called the multi-marginal martingale optimal transport problem. We propose two…

Probability · Mathematics 2020-10-08 Stephan Eckstein , Gaoyue Guo , Tongseok Lim , Jan Obloj

Heuristic algorithms have shown a good ability to solve a variety of optimization problems. Stockpile blending problem as an important component of the mine scheduling problem is an optimization problem with continuous search space…

Neural and Evolutionary Computing · Computer Science 2021-02-11 Yue Xie , Aneta Neumann , Frank Neumann
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