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Effectively encoding inequality constraints is a primary obstacle in applying quantum algorithms to financial optimization. A quantum model for Markowitz portfolio optimization is presented that resolves this by embedding slack variables…

Optimization and Control · Mathematics 2026-01-08 Pablo Thomassin , Guillaume Guerard , Sonia Djebali , Vincent Marc Lambert

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

Quantum annealing is a promising heuristic method to solve combinatorial optimization problems, and efforts to quantify performance on real-world problems provide insights into how this approach may be best used in practice. We investigate…

Quantum Physics · Physics 2023-09-07 Kazuki Ikeda , Yuma Nakamura , Travis S. Humble

The Minimum Bisection Problem is a well-known NP-hard problem in combinatorial optimization, with practical applications in areas such as parallel computing, network design, and machine learning. In this paper, we examine the potential of…

Quantum Physics · Physics 2025-09-24 Renáta Rusnáková , Martin Chovanec , Juraj Gazda

Quantum annealing is a method developed to solve combinatorial optimization problems by utilizing quantum bits. Solving such problems corresponds to minimizing a cost function defined over binary variables. However, in many practical cases,…

Quantum Physics · Physics 2025-06-26 Seiya Endo , Shohei Kawakatsu , Hiromichi Matsuyama , Kohei Suzuki , Yuichiro Matsuzaki

Quantum annealing technologies aim to solve computational optimization and sampling problems. QPU (Quantum Processing Unit) machines such as the D-Wave system use the QUBO (Quadratic Unconstrained Binary Optimization) formula to define…

Quantum Physics · Physics 2022-03-28 Toufan D. Tambunan , Andriyan B. Suksmono , Ian J. M. Edward , Rahmat Mulyawan

The performance of the quantum approximate optimization algorithm is evaluated by using three different measures: the probability of finding the ground state, the energy expectation value, and a ratio closely related to the approximation…

Quantum Physics · Physics 2020-06-08 Madita Willsch , Dennis Willsch , Fengping Jin , Hans De Raedt , Kristel Michielsen

Recent demonstrations on specialized benchmarks have reignited excitement for quantum computers, yet whether they can deliver an advantage for practical real-world problems remains an open question. Here, we show that probabilistic…

Quantum annealers have been designed to propose near-optimal solutions to NP-hard optimization problems. However, the accuracy of current annealers such as the ones of D-Wave Systems, Inc., is limited by environmental noise and hardware…

Quantum Physics · Physics 2022-10-27 Aaron Barbosa , Elijah Pelofske , Georg Hahn , Hristo N. Djidjev

Currency arbitrage capitalizes on price discrepancies in currency exchange rates between markets to produce profits with minimal risk. By employing a combinatorial optimization problem, one can ascertain optimal paths within directed…

Computational Finance · Quantitative Finance 2025-02-25 Sangram Deshpande , Elin Ranjan Das , Frank Mueller

Portfolio construction has been a long-standing topic of research in finance. The computational complexity and the time taken both increase rapidly with the number of investments in the portfolio. It becomes difficult, even impossible for…

Computational Engineering, Finance, and Science · Computer Science 2024-10-17 Queenie Sun , Nicholas Grablevsky , Huaizhang Deng , Pooya Azadi

The major advances in quantum computing over the last few decades have sparked great interest in applying it to solve the most challenging computational problems in a wide variety of areas. One of the most pronounced domains here are…

Quantum Physics · Physics 2024-04-11 Andreas Sturm , Bharadwaj Mummaneni , Leon Rullkötter

Quantum annealing provides a promising route for the development of quantum optimization devices, but the usefulness of such devices will be limited in part by the range of implementable problems as dictated by hardware constraints. To…

Quantum Physics · Physics 2015-10-14 Walter Vinci , Tameem Albash , Gerardo Paz-Silva , Itay Hen , Daniel A. Lidar

Portfolio optimization is one of the most studied optimization problems at the intersection of quantum computing and finance. In this work, we develop the first quantum formulation for a portfolio optimization problem with higher-order…

Quantum Physics · Physics 2026-01-28 Valter Uotila , Julia Ripatti , Bo Zhao

In the last years, several quantum algorithms that try to address the problem of partial differential equation solving have been devised. On one side, "direct" quantum algorithms that aim at encoding the solution of the PDE by executing one…

Quantum Physics · Physics 2021-06-15 Adrien Suau , Gabriel Staffelbach , Henri Calandra

Quantum annealing was originally proposed as an approach for solving combinatorial optimisation problems using quantum effects. D-Wave Systems has released a production model of quantum annealing hardware. However, the inherent noise and…

Disordered Systems and Neural Networks · Physics 2021-03-16 Takehito Sato , Masayuki Ohzeki , Kazuyuki Tanaka

Collaborative filtering models generally perform better than content-based filtering models and do not require careful feature engineering. However, in the cold-start scenario collaborative information may be scarce or even unavailable,…

Information Retrieval · Computer Science 2022-05-13 Artyom Nikitin , Andrei Chertkov , Rafael Ballester-Ripoll , Ivan Oseledets , Evgeny Frolov

The even distribution and optimization of tasks across resources and workstations is a critical process in manufacturing aimed at maximizing efficiency, productivity, and profitability, known as Robotic Assembly Line Balancing (RALB). With…

Quantum Physics · Physics 2024-12-13 Moritz Willmann , Marcel Albus , Jan Schnabel , Marco Roth

Recent work [1] has claimed that a gate-model quantum-classical hybrid algorithm called bias-field digitized counterdiabatic quantum optimization (BF-DCQO) [2] outperforms D-Wave's annealing quantum computers in optimization tasks. We find…

Quantum Physics · Physics 2025-09-19 Pau Farré , Erika Ordog , Kevin Chern , Catherine C. McGeoch

With the increasing popularity of quantum computing and in particular quantum annealing, there has been growing research to evaluate the meta-heuristic for various problems in linear algebra: from linear least squares to matrix and tensor…

Quantum Physics · Physics 2024-10-28 Ajinkya Borle , Samuel J. Lomonaco