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Related papers: Use Cases of Quantum Optimization for Finance

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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

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

In this introductory review, we focus on applications of quantum computation to problems of interest in physics and chemistry. We describe quantum simulation algorithms that have been developed for electronic-structure problems,…

Quantum Physics · Physics 2014-04-16 Man-Hong Yung , James D. Whitfield , Sergio Boixo , David G. Tempel , Alán Aspuru-Guzik

Optimizing quantum circuits is critical for enhancing computational speed and mitigating errors caused by quantum noise. Effective optimization must be achieved without compromising the correctness of the computations. This survey explores…

Quantum Physics · Physics 2025-01-03 Krishnageetha Karuppasamy , Varun Puram , Stevens Johnson , Johnson P Thomas

In recent years, quantum, quantum-inspired, and hybrid algorithms are increasingly showing promise for solving software engineering optimization problems. However, best-intended practices for conducting empirical studies have not yet well…

Software Engineering · Computer Science 2025-11-03 Man Zhang , Yuechen Li , Tao Yue , Kai-Yuan Cai

Recent developments in quantum annealing techniques have been indicating potential advantage of quantum annealing for solving NP-hard optimization problems. In this article we briefly indicate and discuss the beneficial features of quantum…

Statistical Mechanics · Physics 2015-06-22 Sudip Mukherjee , Bikas K. Chakrabarti

Quantum algorithms have the potential to provide exponential speedups over some of the best known classical algorithms. These speedups may enable quantum devices to solve currently intractable problems such as those in the fields of…

Quantum Physics · Physics 2018-12-13 Ciarán Ryan-Anderson

The first quantum computers are expected to perform well at quadratic optimisation problems. In this paper a quadratic problem in finance is taken, the Portfolio Optimisation problem. Here, a set of assets is chosen for investment, such…

Portfolio Management · Quantitative Finance 2020-12-03 Frank Phillipson , Harshil Singh Bhatia

We explore the near-term intersection of quantum computing with the transport sector. To support near-term integration, we introduce a framework for assessing the suitability of transport optimization problems for obtaining potential…

We extend variational quantum optimization algorithms for Quadratic Unconstrained Binary Optimization problems to the class of Mixed Binary Optimization problems. This allows us to combine binary decision variables with continuous decision…

Quantum Physics · Physics 2021-09-13 Lee Braine , Daniel J. Egger , Jennifer Glick , Stefan Woerner

In this paper, we introduce a quantum-enhanced algorithm for simulation-based optimization. Simulation-based optimization seeks to optimize an objective function that is computationally expensive to evaluate exactly, and thus, is…

Quantum Physics · Physics 2021-03-08 Julien Gacon , Christa Zoufal , Stefan Woerner

Quantum Annealing, or Quantum Stochastic Optimization, is a classical randomized algorithm which provides good heuristics for the solution of hard optimization problems. The algorithm, suggested by the behaviour of quantum systems, is an…

Quantum Physics · Physics 2011-07-06 Diego de Falco , Dario Tamascelli

Critical decision-making issues in science, engineering, and industry are based on combinatorial optimization; however, its application is inherently limited by the NP-hard nature of the problem. A specialized paradigm of analogue quantum…

Quantum Physics · Physics 2026-02-04 Rudraksh Sharma , Ravi Katukam , Arjun Nagulapally

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

In this paper we show how to implement in a simple way some complex real-life constraints on the portfolio optimization problem, so that it becomes amenable to quantum optimization algorithms. Specifically, first we explain how to obtain…

Portfolio Management · Quantitative Finance 2021-08-23 Samuel Palmer , Serkan Sahin , Rodrigo Hernandez , Samuel Mugel , Roman Orus

We investigate the feasibility of integrating quantum algorithms as subroutines of simulation-based optimisation problems with relevance to and potential applications in mathematical finance. To this end, we conduct a thorough analysis of…

Quantum mechanics is well known to accelerate statistical sampling processes over classical techniques. In quantitative finance, statistical samplings arise broadly in many use cases. Here we focus on a particular one of such use cases,…

The recent development of quantum computing gives us an opportunity to explore its potential applications to many fields, with the field of finance being no exception. In this paper, we apply the deep quantum neural network proposed by Beer…

Computational Finance · Quantitative Finance 2022-05-17 Takayuki Sakuma

Quantum computing has recently appeared in the headlines of many scientific and popular publications. In the context of quantitative finance, we provide here an overview of its potential.

Mathematical Finance · Quantitative Finance 2023-11-14 Antoine Jacquier , Oleksiy Kondratyev , Gordon Lee , Mugad Oumgari

This paper introduces two techniques that make the standard Quantum Approximate Optimization Algorithm (QAOA) more suitable for constrained optimization problems. The first technique describes how to use the outcome of a prior greedy…

Quantum Physics · Physics 2022-02-07 Wim van Dam , Karim Eldefrawy , Nicholas Genise , Natalie Parham