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Combinatorial optimization is a fundamental challenge in various domains, with portfolio optimization standing out as a key application in finance. Despite numerous quantum algorithmic approaches proposed for this problem, most overlook a…

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

Quantum computers are expected to offer significant advantages in solving complex optimization problems that are challenging for classical computers. Quadratic Unconstrained Binary Optimization (QUBO) problems represent an important class…

Quantum Physics · Physics 2025-10-15 Teemu Pihkakoski , Aravind Plathanam Babu , Pauli Taipale , Petri Liimatta , Matti Silveri

Optimization problems are ubiquitous in various industrial settings, and multi-knapsack optimization is one recurrent task faced daily by several industries. The advent of quantum computing has opened a new paradigm for computationally…

Quantum computing was so far mainly concerned with discrete problems. Recently, E. Novak and the author studied quantum algorithms for high dimensional integration and dealt with the question, which advantages quantum computing can bring…

Quantum Physics · Physics 2016-09-08 Stefan Heinrich

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

Analytical and practical evidence indicates the advantage of quantum computing solutions over classical alternatives. Quantum-based heuristics relying on the variational quantum eigensolver (VQE) and the quantum approximate optimization…

Quantum Physics · Physics 2023-01-05 Sarthak Gupta , Vassilis Kekatos

This article is a brief introduction to quantum algorithms for the eigenvalue problem in quantum many-body systems. Rather than a broad survey of topics, we focus on providing a conceptual understanding of several quantum algorithms that…

Quantum Physics · Physics 2024-06-10 Dean Lee

Transportation systems such as urban logistics, vehicle routing, and infrastructure planning require solving large-scale combinatorial optimization problems under complex constraints. Problems such as the vehicle routing problem (VRP),…

Quantum Physics · Physics 2026-04-30 Talha Azfar , Ruimin Ke , Sean He , Cara Wang , José Holguín-Veras

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

We propose a general, fully gate-based quantum algorithm for counterdiabatic driving. The algorithm does not depend on heuristics as in previous variational methods, and exploits regularisation of the adiabatic gauge potential to suppress…

Quantum Physics · Physics 2024-10-10 Dyon van Vreumingen

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…

Quantum computing has emerged as a promising tool for transforming the landscape of computing technology. Recent efforts have applied quantum techniques to classical database challenges, such as query optimization, data integration, index…

Quantum Physics · Physics 2025-04-14 Rihan Hai , Shih-Han Hung , Tim Coopmans , Tim Littau , Floris Geerts

Optimizing of a portfolio of financial assets is a critical industrial problem which can be approximately solved using algorithms suitable for quantum processing units (QPUs). We benchmark the success of this approach using the Quantum…

Quantum Physics · Physics 2022-02-15 Jack S. Baker , Santosh Kumar Radha

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

We explore to what extent path-integral quantum Monte Carlo methods can efficiently simulate the tunneling behavior of quantum adiabatic optimization algorithms. Specifically we look at symmetric cost functions defined over n bits with a…

Quantum Physics · Physics 2016-03-09 Lucas T. Brady , Wim van Dam

Developing quantum algorithms adaptive to specific constraints of near-term devices is an essential step towards practical quantum advantage. In a recent work [Phys. Rev. Lett. 131, 103601(2023)], we show cold atoms in an optical cavity can…

Quantum Physics · Physics 2024-06-12 Yuchen Luo , Xiaopeng Li , Jian Lin

This is evident that the controllable quantum systems can be the reliable building blocks for Quantum computation. In reality we are witnessing the progress towards making the idea tractable enough, though optimistic but the threshold is…

Quantum Physics · Physics 2024-03-19 Nirupam Dutta

We present a hybrid classical-quantum framework for portfolio construction and rebalancing. Asset selection is performed using Ledoit-Wolf shrinkage covariance estimation combined with hierarchical correlation clustering to extract n = 10…

Portfolio Management · Quantitative Finance 2026-03-19 Abraham Itzhak Weinberg

Computational aspects of the optimal consumption and investment with the partially observed stochastic volatility of the asset prices are considered. The new quantization approach to filtering - density quantization - is introduced which…

Computational Finance · Quantitative Finance 2010-09-30 Grzegorz Hałaj