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A novel optimisation framework through quadratic nonlinear projection is introduced for credit portfolio when the portfolio risk is measured by Conditional Value-at-Risk (CVaR). The whole optimisation procedure to search toward the optimal…

Portfolio Management · Quantitative Finance 2016-07-20 Boguk Kim , Chulwoo Han , Frank Chongwoo Park

Quantum computing is an emerging field on the multidisciplinary interface between physics, engineering, and computer science with the potential to make a large impact on computational intelligence (CI). The aim of this paper is to introduce…

Even a minor boost in solving combinatorial optimization problems can greatly benefit multiple industries. Quantum computers, with their unique information processing capabilities, hold promise for delivering such enhancements. The…

Quantum Physics · Physics 2025-05-15 Gabriel Marin-Sanchez , David Amaro

Quantum annealers can solve QUBO problems efficiently but struggle with continuous optimization tasks like regression due to their discrete nature. We introduce Quadratic Continuous Quantum Optimization (QCQO), an anytime algorithm that…

Quantum Physics · Physics 2026-01-01 Sascha Mücke , Thore Gerlach , Nico Piatkowski

We study risk-sensitive Reinforcement Learning (RL), where we aim to maximize the Conditional Value at Risk (CVaR) with a fixed risk tolerance $\tau$. Prior theoretical work studying risk-sensitive RL focuses on the tabular Markov Decision…

Machine Learning · Computer Science 2023-11-21 Yulai Zhao , Wenhao Zhan , Xiaoyan Hu , Ho-fung Leung , Farzan Farnia , Wen Sun , Jason D. Lee

Value-at-risk (VaR) is an established measure to assess risks in critical real-world applications with random environmental factors. This paper presents a novel VaR upper confidence bound (V-UCB) algorithm for maximizing the VaR of a…

Machine Learning · Computer Science 2021-05-14 Quoc Phong Nguyen , Zhongxiang Dai , Bryan Kian Hsiang Low , Patrick Jaillet

This paper studies flexible multi-facility capacity expansion with risk aversion. In this setting, the decision maker can periodically expand the capacity of facilities given observations of uncertain demand. We model this situation as a…

Optimization and Control · Mathematics 2019-05-15 Sixiang Zhao , William B. Haskell , Michel-Alexandre Cardin

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

Optimization problems are prevalent in various fields, and the gradient-based gradient descent algorithm is a widely adopted optimization method. However, in classical computing, computing the numerical gradient for a function with $d$…

Quantum Physics · Physics 2023-05-12 Ronghang Chen , Shi-Yao Hou , Cong Guo , Guanru Feng

Quantum approximate optimization algorithm (QAOA) is one of the popular quantum algorithms that are used to solve combinatorial optimization problems via approximations. QAOA is able to be evaluated on both physical and virtual quantum…

Quantum Physics · Physics 2023-12-07 Yu-Cheng Lin , Chuan-Chi Wang , Chia-Heng Tu , Shih-Hao Hung

Current gate-based quantum computers have the potential to provide a computational advantage if algorithms use quantum hardware efficiently. To make combinatorial optimization more efficient, we introduce the Filtering Variational Quantum…

Evolutionary algorithms (EAs) are the preferred method for solving black-box multi-objective optimization problems, but when gradients of the objective functions are available, it is not straightforward to exploit these efficiently. By…

Optimization and Control · Mathematics 2021-02-23 Timo M. Deist , Stefanus C. Maree , Tanja Alderliesten , Peter A. N. Bosman

Combinatorial optimization on near-term quantum devices is a promising path to demonstrating quantum advantage. However, the capabilities of these devices are constrained by high noise or error rates. In this paper, we propose an iterative…

Quantum Physics · Physics 2022-05-12 Xiaoyuan Liu , Anthony Angone , Ruslan Shaydulin , Ilya Safro , Yuri Alexeev , Lukasz Cincio

Chance-constrained programs (CCPs) provide a powerful modeling framework for decision-making under uncertainty, but their nonconvex feasible regions make them computationally challenging. A widely used convex inner approximation replaces…

Optimization and Control · Mathematics 2026-03-31 Rui Chen , Nan Jiang

Optimization problems are critical across various domains, yet existing quantum algorithms, despite their great potential, struggle with scalability and accuracy due to excessive reliance on entanglement. To address these limitations, we…

Quantum Physics · Physics 2025-03-04 Seongmin Kim , In-Saeng Suh

Solving optimization problems with high performance is the target of existing works of Quantum Approximate Optimization Algorithm (QAOA). With this intention, we propose an advanced QAOA based on incremental learning, where the training…

Quantum Physics · Physics 2023-11-07 Lingxiao Li , Jing Li , Yanqi Song , Sujuan Qin , Qiaoyan Wen , Fei Gao

We present a polynomial-time online algorithm for maximizing the conditional value at risk (CVaR) of a monotone stochastic submodular function. Given $T$ i.i.d. samples from an underlying distribution arriving online, our algorithm produces…

Data Structures and Algorithms · Computer Science 2021-05-21 Tasuku Soma , Yuichi Yoshida

We propose and analyze algorithms for distributionally robust optimization of convex losses with conditional value at risk (CVaR) and $\chi^2$ divergence uncertainty sets. We prove that our algorithms require a number of gradient…

Optimization and Control · Mathematics 2020-12-14 Daniel Levy , Yair Carmon , John C. Duchi , Aaron Sidford

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,…

Combinatorial optimization is anticipated to be one of the primary use cases for quantum computation in the coming years. The Quantum Approximate Optimization Algorithm (QAOA) and Quantum Annealing (QA) can potentially demonstrate…

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