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Quantum optimization holds promise for addressing classically intractable combinatorial problems, yet a standardized framework for benchmarking its performance, particularly in terms of solution quality, computational speed, and scalability…

Quantum Physics · Physics 2025-03-20 Monit Sharma , Hoong Chuin Lau

In this paper we tackle the problem of dynamic portfolio optimization, i.e., determining the optimal trading trajectory for an investment portfolio of assets over a period of time, taking into account transaction costs and other possible…

One of the problems in quantitative finance that has received the most attention is the portfolio optimization problem. Regarding its solving, this problem has been approached using different techniques, with those related to quantum…

Artificial Intelligence · Computer Science 2023-09-28 Eneko Osaba , Guillaume Gelabert , Esther Villar-Rodriguez , Antón Asla , Izaskun Oregi

Quantum optimization allows for up to exponential quantum speedups for specific, possibly industrially relevant problems. As the key algorithm in this field, we motivate and discuss the Quantum Approximate Optimization Algorithm (QAOA),…

Quantum Physics · Physics 2025-11-18 Jonas Stein , Maximilian Zorn , Leo Sünkel , Thomas Gabor

The quantum approximate optimization algorithm (QAOA) transforms a simple many-qubit wavefunction into one which encodes a solution to a difficult classical optimization problem. It does this by optimizing the schedule according to which…

Quantum Physics · Physics 2022-06-29 Yunlong Yu , Chenfeng Cao , Carter Dewey , Xiang-Bin Wang , Nic Shannon , Robert Joynt

Present-day, noisy, small or intermediate-scale quantum processors---although far from fault-tolerant---support the execution of heuristic quantum algorithms, which might enable a quantum advantage, for example, when applied to…

The quantum approximate optimization algorithm (QAOA) is a leading iterative variational quantum algorithm for heuristically solving combinatorial optimization problems. A large portion of the computational effort in QAOA is spent by the…

Quantum Physics · Physics 2022-08-23 Ohad Amosy , Tamuz Danzig , Ely Porat , Gal Chechik , Adi Makmal

The Quantum Approximate Optimization Algorithm (QAOA) is a general-purpose algorithm for combinatorial optimization problems whose performance can only improve with the number of layers $p$. While QAOA holds promise as an algorithm that can…

Quantum Physics · Physics 2022-07-08 Edward Farhi , Jeffrey Goldstone , Sam Gutmann , Leo Zhou

The quantum approximate optimization algorithm (QAOA) is a promising quantum-classical hybrid technique to solve combinatorial optimization problems in near-term gate-based noisy quantum devices. In QAOA, the objective is a function of the…

Quantum Physics · Physics 2019-07-24 Mahabubul Alam , Abdullah Ash-Saki , Swaroop Ghosh

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

The quantum approximate optimisation algorithm (QAOA) is at the core of many scenarios that aim to combine the power of quantum computers and classical high-performance computing appliances for combinatorial optimisation. Several obstacles…

Quantum Physics · Physics 2026-02-26 Simon Thelen , Hila Safi , Wolfgang Mauerer

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

Currency arbitrage capitalizes on price discrepancies in currency exchange rates between markets to produce profits with minimal risk. By employing a combinatorial optimization problem, one can ascertain optimal paths within directed…

Computational Finance · Quantitative Finance 2025-02-25 Sangram Deshpande , Elin Ranjan Das , Frank Mueller

The Quantum Approximate Optimization Algorithm (QAOA) has emerged as a promising variational quantum algorithm for addressing NP hard combinatorial optimization problems. However, a significant limitation lies in optimizing its classical…

Quantum Physics · Physics 2023-09-22 Peter Gleißner , Georg Kruse , Andreas Roßkopf

In the rapidly advancing domain of quantum optimization, the confluence of quantum algorithms such as Quantum Annealing (QA) and the Quantum Approximate Optimization Algorithm (QAOA) with robust optimization methodologies presents a…

Quantum Physics · Physics 2024-05-14 Pascal Halffmann , Steve Lenk , Michael Trebing

The Quantum Approximate Optimization Algorithm (QAOA) is suggested as a promising application on early quantum computers. Here, a quantum-inspired classical algorithm, the mean-field Approximate Optimization Algorithm (mean-field AOA), is…

The Quantum Approximate Optimization Algorithm (QAOA) is a well-known hybrid quantum-classical algorithm for combinatorial optimization problems. Improving QAOA involves enhancing its approximation ratio while addressing practical…

Quantum Physics · Physics 2025-02-07 Yukun Wang , ZeYang Li , Linchun Wan

Portfolio selection is one of the most important and vital decisions that a real or legal person, who invests in stock market should make. The main purpose of this paper is the determination of the optimal portfolio with regard to stock…

Optimization and Control · Mathematics 2015-08-07 Elham Shadkam , Reza Delavari , Farzad Memariani , Morteza Poursaleh

The Quantum Approximate Optimisation Algorithm (QAOA) is a widely studied quantum-classical iterative heuristic for combinatorial optimisation. While QAOA targets problems in complexity class NP, the classical optimisation procedure…

Quantum Physics · Physics 2025-11-12 Tom Krüger , Wolfgang Mauerer

The Quantum Approximate Optimization Algorithm (QAOA) has enjoyed increasing attention in noisy intermediate-scale quantum computing due to its application to combinatorial optimization problems. Because combinatorial optimization problems…

Optimization and Control · Mathematics 2024-01-18 Yunsoo Ha , Sara Shashaani , Matt Menickelly