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Sampling a diverse set of high-quality solutions for hard optimization problems is of great practical relevance in many scientific disciplines and applications, such as artificial intelligence and operations research. One of the main open…

This paper proposes a highly efficient quantum algorithm for portfolio optimisation targeted at near-term noisy intermediate-scale quantum computers. Recent work by Hodson et al. (2019) explored potential application of hybrid…

Quantum Physics · Physics 2021-07-29 N. Slate , E. Matwiejew , S. Marsh , J. B. Wang

In this paper we briefly review two recent use-cases of quantum optimization algorithms applied to hard problems in finance and economy. Specifically, we discuss the prediction of financial crashes as well as dynamic portfolio optimization.…

General Finance · Quantitative Finance 2020-10-06 Samuel Mugel , Enrique Lizaso , Roman Orus

We propose and compare Constraint Programming (CP) and Quantum Annealing (QA) approaches for rolling stock assignment optimisation considering necessary maintenance tasks. In the CP approach, we model the problem with an Alldifferent…

Artificial Intelligence · Computer Science 2023-09-26 Patricia Bickert , Cristian Grozea , Ronny Hans , Matthias Koch , Christina Riehn , Armin Wolf

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

The first quantum computers are expected to perform well at quadratic optimisation problems. In this paper a quadratic problem in finance is taken, the Portfolio Optimisation problem. Here, a set of assets is chosen for investment, such…

Portfolio Management · Quantitative Finance 2020-12-03 Frank Phillipson , Harshil Singh Bhatia

Quantum annealing has emerged as a promising approach for solving NP-hard optimization problems, leveraging quantum phenomena such as quantum tunneling to navigate complex energy landscapes. However, the extent to which quantum tunneling…

Quantum Physics · Physics 2026-03-02 Vishwajeet Ohal , Pierre Boulanger

Portfolio optimization is a routine asset management operation conducted in financial institutions around the world. However, under real-world constraints such as turnover limits and transaction costs, its formulation becomes a…

Disordered Systems and Neural Networks · Physics 2025-07-11 Nishan Ranabhat , Behnam Javanparast , David Goerz , Estelle Inack

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…

We present a quantum algorithm for portfolio optimisation. Specifically, We present an end-to-end quantum approximate optimisation algorithm (QAOA) to solve the discrete global minimum variance portfolio (DGMVP) model. This model finds a…

Quantum Physics · Physics 2024-10-22 Haomu Yuan , Christopher K. Long , Hugo V. Lepage , Crispin H. W. Barnes

Portfolio construction has been a long-standing topic of research in finance. The computational complexity and the time taken both increase rapidly with the number of investments in the portfolio. It becomes difficult, even impossible for…

Computational Engineering, Finance, and Science · Computer Science 2024-10-17 Queenie Sun , Nicholas Grablevsky , Huaizhang Deng , Pooya Azadi

We discuss how quantum computation can be applied to financial problems, providing an overview of current approaches and potential prospects. We review quantum optimization algorithms, and expose how quantum annealers can be used to…

Quantum Physics · Physics 2019-03-04 Roman Orus , Samuel Mugel , Enrique Lizaso

Quantum Annealing, or Quantum Stochastic Optimization, is a classical randomized algorithm which provides good heuristics for the solution of hard optimization problems. The algorithm, suggested by the behaviour of quantum systems, is an…

Quantum Physics · Physics 2011-07-06 Diego de Falco , Dario Tamascelli

Quantum computing is gaining popularity across a wide range of scientific disciplines due to its potential to solve long-standing computational problems that are considered intractable with classical computers. One promising area where…

Quantum Physics · Physics 2023-05-15 Benjamin C. B. Symons , David Galvin , Emre Sahin , Vassil Alexandrov , Stefano Mensa

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…

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

The quest for real-time dynamic optimization solutions in the process industry represents a formidable computational challenge, particularly within the realm of applications like model-predictive control, where rapid and reliable…

Optimization and Control · Mathematics 2024-04-29 Dennis Michael Nenno , Adrian Caspari

We present a quantum annealing-based solution method for topology optimization (TO). In particular, we consider TO in a more general setting, i.e., applied to structures of continuum domains where designs are represented as distributed…

Numerical Analysis · Mathematics 2023-01-30 Zisheng Ye , Xiaoping Qian , Wenxiao Pan

An important task in multi-objective optimization is generating the Pareto front -- the set of all Pareto-optimal compromises among multiple objective functions applied to the same set of variables. Since this task can be computationally…

Quantum Physics · Physics 2025-11-04 Andrew D. King

Quantum annealing is a generic algorithm using quantum-mechanical fluctuations to search for the solution of an optimization problem. The present paper first reviews the fundamentals of quantum annealing and then reports on preliminary…

Disordered Systems and Neural Networks · Physics 2010-06-10 Masayuki Ohzeki , Hidetoshi Nishimori