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This paper concerns the numerical solution of a fully nonlinear parabolic double obstacle problem arising from a finite portfolio selection with proportional transaction costs. We consider the optimal allocation of wealth among multiple…

Portfolio Management · Quantitative Finance 2017-11-06 Arash Fahim , Wan-Yu Tsai

In this work we propose a high-quality decomposition approach for qubit routing by swap insertion. This optimization problem arises in the context of compiling quantum algorithms onto specific quantum hardware. Our approach decomposes the…

Quantum Physics · Physics 2023-05-15 Friedrich Wagner , Andreas Bärmann , Frauke Liers , Markus Weissenbäck

In the pursuit of achieving near-term quantum advantage for combinatorial optimization problems, the Quantum Approximate Optimization Algorithm (QAOA) and the Variational Quantum Eigensolver (VQE) are the primary methods of interest, but…

Quantum Physics · Physics 2025-03-06 Adelina Bärligea , Benedikt Poggel , Jeanette Miriam Lorenz

We employ perturbation analysis technique to study multi-asset portfolio optimisation with transaction cost. We allow for correlations in risky assets and obtain optimal trading methods for general utility functions. Our analytical results…

Portfolio Management · Quantitative Finance 2009-05-06 Siu Lung Law , Chiu Fan Lee , Sam Howison , Jeff N. Dewynne

A range of quantum algorithms, especially those leveraging variational parameterization and circuit-based optimization, are being studied as alternatives for solving classically intractable combinatorial optimization problems (COPs).…

Quantum Physics · Physics 2025-06-18 Monit Sharma , Hoong Chuin Lau

The aircraft loading optimization problem is a computationally hard problem with the best known classical algorithm scaling exponentially with the number of objects. We propose a quantum approach based on a multi-angle variant of the QAOA…

Challenging combinatorial optimization problems are ubiquitous in science and engineering. Several quantum methods for optimization have recently been developed, in different settings including both exact and approximate solvers. Addressing…

Quantum Physics · Physics 2023-09-20 Nicolas PD Sawaya , Albert T Schmitz , Stuart Hadfield

Most combinatorial optimization problems can be formulated as mixed integer linear programming (MILP), in which branch-and-bound (B\&B) is a general and widely used method. Recently, learning to branch has become a hot research topic in the…

Machine Learning · Computer Science 2022-01-19 Qingyu Qu , Xijun Li , Yunfan Zhou , Jia Zeng , Mingxuan Yuan , Jie Wang , Jinhu Lv , Kexin Liu , Kun Mao

Application of nonlinear model predictive control (NMPC) to problems with hybrid dynamical systems, disjoint constraints, or discrete controls often results in mixed-integer formulations with both continuous and discrete decision variables.…

Systems and Control · Electrical Eng. & Systems 2024-01-24 Christopher A. Orrico , W. P. M. H. Heemels , Dinesh Krishnamoorthy

Portfolio optimization is a primary component of the decision-making process in finance, aiming to tactfully allocate assets to achieve optimal returns while considering various constraints. Herein, we proposed a method that uses the…

Quantum Physics · Physics 2024-12-24 Chansreynich Huot , Kimleang Kea , Tae-Kyung Kim , Youngsun Han

We introduce and study the combinatorial optimization problem with interaction costs (COPIC). COPIC is the problem of finding two combinatorial structures, one from each of two given families, such that the sum of their independent linear…

Optimization and Control · Mathematics 2017-07-11 Stefan Lendl , Ante Ćustić , Abraham P. Punnen

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

Combinatorial optimization is a challenging problem applicable in a wide range of fields from logistics to finance. Recently, quantum computing has been used to attempt to solve these problems using a range of algorithms, including…

Quantum Physics · Physics 2024-03-06 Jonathan Wurtz , Stefan Sack , Sheng-Tao Wang

Critical decision-making issues in science, engineering, and industry are based on combinatorial optimization; however, its application is inherently limited by the NP-hard nature of the problem. A specialized paradigm of analogue quantum…

Quantum Physics · Physics 2026-02-04 Rudraksh Sharma , Ravi Katukam , Arjun Nagulapally

We study a market of investments on networks, where each agent (vertex) can invest in any enterprise linked to her, and at the same time, raise capital for her firm's enterprise from other agents she is linked to. Failing to raise…

Computer Science and Game Theory · Computer Science 2022-03-22 Moshe Babaioff , Yoav Kolumbus , Eyal Winter

In this paper we address a unified mathematical optimization framework to compute a wide range of measures used in most operations research and data science contexts. The goal is to embed such metrics within general optimization models…

Optimization and Control · Mathematics 2025-03-25 Victor Blanco , Miguel A. Pozo , Justo Puerto , Alberto Torrejon

In the era of quantum computing, the emergence of quantum computers and subsequent advancements have led to the development of various quantum algorithms capable of solving linear equations and eigenvalues, surpassing the pace of classical…

Quantum Physics · Physics 2024-11-26 Hyunju Lee , Kyungtaek Jun

We develop a dynamic trading strategy in the Linear Quadratic Regulator (LQR) framework. By including a price mean-reversion signal into the optimization program, in a trading environment where market impact is linear and stage costs are…

Statistics Theory · Mathematics 2021-11-04 Simon Clinet , Jean-François Perreton , Serge Reydellet

We investigate the feasibility of integrating quantum algorithms as subroutines of simulation-based optimisation problems with relevance to and potential applications in mathematical finance. To this end, we conduct a thorough analysis of…

Compilation and optimization of quantum circuits are critical components in the execution of algorithms on quantum computers. These components must successfully balance two competing priorities: minimizing the number of expensive resources,…