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Related papers: Portfolio Optimisation Using the D-Wave Quantum An…

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We solve a multi-period portfolio optimization problem using D-Wave Systems' quantum annealer. We derive a formulation of the problem, discuss several possible integer encoding schemes, and present numerical examples that show high success…

Computational Finance · Quantitative Finance 2016-09-29 Gili Rosenberg , Poya Haghnegahdar , Phil Goddard , Peter Carr , Kesheng Wu , Marcos López de Prado

We continue to investigate the use of quantum computers for building an optimal portfolio out of a universe of 60 U.S. listed, liquid equities. Starting from historical market data, we apply our unique problem formulation on the D-Wave…

General Finance · Quantitative Finance 2020-08-21 Jeffrey Cohen , Alex Khan , Clark Alexander

One of the problems frequently mentioned as a candidate for quantum advantage is that of selecting a portfolio of financial assets to maximize returns while minimizing risk. In this paper we formulate several real-world constraints for use…

Materials Science · Physics 2022-03-10 Salvatore Certo , Anh Dung Pham , Daniel Beaulieu

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 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

In this paper we tackle the problem of dynamic portfolio optimization, i.e., determining the optimal trading trajectory for an investment portfolio of assets over a period of time, taking into account transaction costs and other possible…

We investigate the use of quantum computers for building a portfolio out of a universe of U.S. listed, liquid equities that contains an optimal set of stocks. Starting from historical market data, we look at various problem formulations on…

General Finance · Quantitative Finance 2020-07-06 Jeffrey Cohen , Alex Khan , Clark Alexander

Hybrid-quantum classical optimization has emerged as a promising direction for addressing financial decision problems under current quantum hardware constraints. In this work we present a practical end-to-end portfolio optimization pipeline…

In this note, we describe an experiment on portfolio optimization using the Quadratic Unconstrained Binary Optimization (QUBO) formulation. The dataset we use is taken from a real-world problem for which a classical solution is currently…

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…

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

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

Quantum annealing offers a novel approach to finding the optimal solutions for a variety of computational problems, where the quantum annealing controls influence the observed performance and error mechanisms by tuning the underlying…

Quantum Physics · Physics 2021-01-13 Erica Grant , Travis Humble , Benjamin Stump

Recently, several researchers proposed portfolio optimization as a potential use case for quantum optimization. However, the literature is lacking an extensive benchmark quantifying the potential of quantum computers for portfolio…

Quantum Physics · Physics 2025-09-23 Eric Stopfer , Friedrich Wagner

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

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 (PO) is extensively employed in financial services to assist in achieving investment objectives. By providing an optimal asset allocation, PO effectively balances the risk and returns associated with investments.…

Quantum Physics · Physics 2024-07-09 Zhijie Tang , Alex Lu Dou , Arit Kumar Bishwas

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

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

Recent advances in quantum hardware offer new approaches to solve various optimization problems that can be computationally expensive when classical algorithms are employed. We propose a hybrid quantum-classical algorithm to solve a dynamic…

Quantum Physics · Physics 2023-03-23 H. Xu , S. Dasgupta , A. Pothen , A. Banerjee
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