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Recent advances in quantum technology have led to the development and manufacturing of experimental programmable quantum annealers that promise to solve certain combinatorial optimization problems of practical relevance faster than their…

Quantum Physics · Physics 2016-05-31 Itay Hen , Federico M. Spedalieri

This paper studies a robust continuous-time Markowitz portfolio selection pro\-blem where the model uncertainty carries on the covariance matrix of multiple risky assets. This problem is formulated into a min-max mean-variance problem over…

Portfolio Management · Quantitative Finance 2017-03-14 Amine Ismail , Huyên Pham

We describe a quantum algorithm that solves combinatorial optimization problems by quantum simulation of a classical simulated annealing process. Our algorithm exploits quantum walks and the quantum Zeno effect induced by evolution…

Quantum Physics · Physics 2009-02-02 R. D. Somma , S. Boixo , H. Barnum , E. Knill

The recent emergence of novel computational devices, such as quantum computers, coherent Ising machines, and digital annealers presents new opportunities for hardware-accelerated hybrid optimization algorithms. Unfortunately, demonstrations…

Optimization and Control · Mathematics 2020-10-21 Yuchen Pang , Carleton Coffrin , Andrey Y. Lokhov , Marc Vuffray

Quadratic unconstrained binary optimization (QUBO) is the mathematical formalism for phrasing and solving a class of optimization problems that are combinatorial in nature. Due to their natural equivalence with the two dimensional Ising…

We propose a faster digital quantum algorithm for portfolio optimization using the digitized-counterdiabatic quantum optimization (DCQO) paradigm in the impulse regime, that is, where the counterdiabatic terms are dominant. Our approach…

This work is a benchmark study for quantum-classical computing method with a real-world optimization problem from industry. The problem involves scheduling and balancing jobs on different machines, with a non-linear objective function. We…

Quantum Physics · Physics 2024-08-06 Abhishek Awasthi , Nico Kraus , Florian Krellner , David Zambrano

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…

This paper explores the applications of quantum annealing (QA) and classical simulated annealing (SA) to a suite of combinatorial optimization problems in machine learning, namely feature selection, instance selection, and clustering. We…

Quantum Physics · Physics 2025-07-22 Chloe Pomeroy , Aleksandar Pramov , Karishma Thakrar , Lakshmi Yendapalli

We present a simulation-and-regression method for solving dynamic portfolio allocation problems in the presence of general transaction costs, liquidity costs and market impacts. This method extends the classical least squares Monte Carlo…

Portfolio Management · Quantitative Finance 2019-06-05 Rongju Zhang , Nicolas Langrené , Yu Tian , Zili Zhu , Fima Klebaner , Kais Hamza

Discrete combinatorial optimization consists in finding the optimal configuration that minimizes a given discrete objective function. An interpretation of such a function as the energy of a classical system allows us to reduce the…

Quantum Physics · Physics 2015-06-22 Sergio Boixo , Gerardo Ortiz , Rolando Somma

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

Two-stage stochastic programming is a problem formulation for decision-making under uncertainty. In the first stage, the actor makes a best "here and now" decision in the presence of uncertain quantities that will be resolved in the future,…

The quantum approximate optimisation algorithm was proposed as a heuristic method for solving combinatorial optimisation problems on near-term quantum computers and may be among the first algorithms to perform useful computations in the…

Quantum Physics · Physics 2022-11-10 David Headley , Thorge Müller , Ana Martin , Enrique Solano , Mikel Sanz , Frank K. Wilhelm

Combinatorial optimization problems are ubiquitous and computationally hard to solve in general. Quantum approximate optimization algorithm (QAOA), one of the most representative quantum-classical hybrid algorithms, is designed to solve…

Quantum Physics · Physics 2024-03-12 Lixue Cheng , Yu-Qin Chen , Shi-Xin Zhang , Shengyu Zhang

Quantum annealing is a generic solver for combinatorial optimization problems that utilizes quantum fluctuations. Recently, there has been extensive research applying quantum annealers, which are hardware implementations of quantum…

Quantum Physics · Physics 2025-04-22 Taisei Takabayashi , Takeru Goto , Masayuki Ohzeki

The field of Quantum Computing has gathered significant popularity in recent years and a large number of papers have studied its effectiveness in tackling many tasks. We focus in particular on Quantum Annealing (QA), a meta-heuristic solver…

Quantum Physics · Physics 2026-03-03 Riccardo Pellini , Maurizio Ferrari Dacrema

This paper summarizes a quantum algorithm of [R.D. Somma, et.al., Phys. Rev. Lett. 101, 130504 (2008)] that simulates a classical annealing process for solving discrete optimization problems. The complexity of the quantum algorithm scales…

Quantum Physics · Physics 2015-12-16 Sergio Boixo , Rolando D. Somma

Markowitz's criterion aims to balance expected return and risk when optimizing the portfolio. The expected return level is usually fixed according to the risk appetite of an investor, then the risk is minimized at this fixed return level.…

Portfolio Management · Quantitative Finance 2024-11-08 Yizun Lin , Yongxin He , Zhao-Rong Lai

Quantum and quantum-inspired optimisation algorithms are designed to solve problems represented in binary, quadratic and unconstrained form. Combinatorial optimisation problems are therefore often formulated as Quadratic Unconstrained…

Artificial Intelligence · Computer Science 2022-05-27 Mayowa Ayodele , Richard Allmendinger , Manuel López-Ibáñez , Matthieu Parizy