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Quantum Approximate Optimization Algorithm (QAOA) is one of the fundamental variational quantum algorithms, while a version of QAOA that includes counterdiabatic driving, termed Digitized Counterdiabatic QAOA (DC-QAOA), is generally…

Quantum Physics · Physics 2025-06-02 Jie Liu , Xin Wang

Portfolio optimization plays a central role in finance to obtain optimal portfolio allocations that aim to achieve certain investment goals. Over the years, many works have investigated different variants of portfolio optimization.…

Quantum Physics · Physics 2023-02-01 Debbie Lim , Patrick Rebentrost

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 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

One of the problems frequently mentioned as a candidate for quantum advantage is that of selecting a portfolio of financial assets to maximize returns while minimizing risk. In this paper we formulate several real-world constraints for use…

Materials Science · Physics 2022-03-10 Salvatore Certo , Anh Dung Pham , Daniel Beaulieu

We describe tensor network algorithms to optimize quantum circuits for adiabatic quantum computing. To suppress diabatic transitions, we include counterdiabatic driving in the optimization and utilize variational matrix product operators to…

Quantum Physics · Physics 2024-06-21 Conor Mc Keever , Michael Lubasch

The digital version of adiabatic quantum computing enhanced by counterdiabatic driving, known as digitized counterdiabatic quantum computing, has emerged as a paradigm that opens the door to fast and low-depth algorithms. In this work, we…

Quantum Physics · Physics 2025-07-21 Diego Tancara , Francisco Albarrán-Arriagada

Considerable effort has been made recently in the development of heuristic quantum algorithms for solving combinatorial optimization problems. Meanwhile, these problems have been studied extensively in classical computing for decades. In…

Quantum Physics · Physics 2022-03-29 Guoming Wang

Portfolio optimization is an inseparable part of strategic asset allocation at the Czech National Bank. Quantum computing is a new technology offering algorithms for that problem. The capabilities and limitations of quantum computers with…

General Economics · Economics 2023-03-06 Martin Vesely

Quantum integer factorization is a potential quantum computing solution that may revolutionize cryptography. Nevertheless, a scalable and efficient quantum algorithm for noisy intermediate-scale quantum computers looks far-fetched. We…

Portfolio Optimization (PO) is a financial problem aiming to maximize the net gains while minimizing the risks in a given investment portfolio. The novelty of Quantum algorithms lies in their acclaimed potential and capability to solve…

Quantum Physics · Physics 2024-07-30 Kamila Zaman , Alberto Marchisio , Muhammad Kashif , Muhammad Shafique

Quantum optimization is the most mature quantum computing technology to date, providing a promising approach towards efficiently solving complex combinatorial problems. Methods such as adiabatic quantum computing (AQC) have been employed in…

We propose a quantum-inspired classical algorithm for combinatorial optimization problems, named the counterdiabaticity-assisted classical algorithm for optimization (CACAO). In this algorithm, a solution of a given combinatorial…

Quantum Physics · Physics 2025-06-12 Takuya Hatomura

Recently, several researchers proposed portfolio optimization as a potential use case for quantum optimization. However, the literature is lacking an extensive benchmark quantifying the potential of quantum computers for portfolio…

Quantum Physics · Physics 2025-09-23 Eric Stopfer , Friedrich Wagner

Coherent Ising machines (CIMs) have emerged as specialized quantum hardware for large-scale combinatorial optimization. However, for large instances that remain challenging for classical methods, some platforms support only finite-precision…

Quantum Physics · Physics 2026-03-25 Keming He , Yuehan Zhang , Hongshun Yao , Jin-Guo Liu , Xin Wang

We present a scalable, hardware-aware methodology for extending the Variational Quantum Eigensolver (VQE) to large, realistic Dynamic Portfolio Optimization (DPO) problems. Building on the scaling strategy from our previous work, where we…

Utilizing counterdiabatic (CD) driving - aiming at suppression of diabatic transition - in digitized adiabatic evolution have garnered immense interest in quantum protocols and algorithms. However, improving the approximate CD terms with a…

Quantum Physics · Physics 2022-11-10 Dan Sun , Pranav Chandarana , Zi-Hua Xin , Xi Chen

The Quantum Approximate Optimization Algorithm (QAOA) has emerged as a promising approach for solving NP hard combinatorial optimization problems on noisy intermediate-scale quantum (NISQ) hardware. However, its performance is critically…

Quantum Physics · Physics 2025-11-13 Rakesh Saini , Nora Mohamed , Saif Al-Kuwari , Ahmed Farouk

Quantum computing is poised to transform the financial industry, yet its advantages over traditional methods have not been evidenced. As this technology rapidly evolves, benchmarking is essential to fairly evaluate and compare different…

Optimization and Control · Mathematics 2025-02-11 Ying Chen , Thorsten Koch , Hanqiu Peng , Hongrui Zhang

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