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Optimizing portfolio performance is a fundamental challenge in financial modeling, requiring the integration of advanced clustering techniques and data-driven optimization strategies. This paper introduces a comparative backtesting approach…

Machine Learning · Computer Science 2025-01-23 Keon Vin Park

We explore the application of variational quantum algorithms to the NP-hard set balancing problem, a critical challenge in clinical trial design and experimental scheduling. The problem is mapped to an Ising model, with tailored Quadratic…

Quantum Physics · Physics 2025-09-10 Nikhil Kowshik , Sayan Manna , Sudebkumar Prasant Pal

We study the finite horizon Merton portfolio optimization problem in a general local-stochastic volatility setting. Using model coefficient expansion techniques, we derive approximations for the both the value function and the optimal…

Computational Finance · Quantitative Finance 2015-06-23 Matthew Lorig , Ronnie Sircar

With photonics, the quantum computational advantage has been demonstrated on the task of boson sampling. Next, developing quantum-enhanced approaches for practical problems becomes one of the top priorities for photonic systems. Quantum…

Quantum computing promises to improve the information processing power to levels unreachable by classical computation. Quantum walks are heading the development of quantum algorithms for searching information on graphs more efficiently than…

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

In this paper we develop a concrete and fully implementable approach to the optimization of functionally generated portfolios in stochastic portfolio theory. The main idea is to optimize over a family of rank-based portfolios parameterized…

Portfolio Management · Quantitative Finance 2021-10-12 Steven Campbell , Ting-Kam Leonard Wong

Cross-market portfolio optimization has become increasingly complex with the globalization of financial markets and the growth of high-frequency, multi-dimensional datasets. Traditional artificial neural networks, while effective in certain…

Portfolio Management · Quantitative Finance 2025-10-21 Amarendra Mohan , Ameer Tamoor Khan , Shuai Li , Xinwei Cao , Zhibin Li

This paper presents a sophisticated multi-day turnover quantitative trading algorithm that integrates advanced deep learning techniques with comprehensive cross-sectional stock prediction for the Chinese A-share market. Our framework…

Computational Engineering, Finance, and Science · Computer Science 2025-06-10 Yimin Du

We present a novel Adaptive Distribution Generator that leverages a quantum walks-based approach to generate high precision and efficiency of target probability distributions. Our method integrates variational quantum circuits with…

Quantum Physics · Physics 2026-04-10 Yen-Jui Chang , Wei-Ting Wang , Chen-Yu Liu , Yun-Yuan Wang , Ching-Ray Chang

Quantum walks provide a versatile framework for probing the structural and dynamical properties of complex systems ranging from biological networks to synthetic materials. However, their realization on current noisy pre-fault-tolerant…

Quantum signal processing (QSP) provides a systematic framework for implementing a polynomial transformation of a linear operator, and unifies nearly all known quantum algorithms. In parallel, recent works have developed randomized…

Quantum Physics · Physics 2025-03-26 John M. Martyn , Patrick Rall

A fractal approach to the long-short portfolio optimization is proposed. The algorithmic system based on the composition of market-neutral spreads into a single entity was considered. The core of the optimization scheme is a fractal walk…

Portfolio Management · Quantitative Finance 2016-12-20 Sergey Kamenshchikov , Ilia Drozdov

Classical correlation and rolling PCA summarize market dependence through covariance spectra, but they do not provide a unified operator representation for entropy, purity-based mixing, and standardized structural deviations built from…

Risk Management · Quantitative Finance 2026-04-01 Hui Gong , Akash Sedai , Francesca Medda

In this paper, we investigate the application of quantum and quantum-inspired machine learning algorithms to stock return predictions. Specifically, we evaluate the performance of quantum neural network, an algorithm suited for noisy…

Machine Learning · Computer Science 2024-02-28 Nozomu Kobayashi , Yoshiyuki Suimon , Koichi Miyamoto , Kosuke Mitarai

We develop a new framework that extends the quantum walk framework of Magniez, Nayak, Roland, and Santha, by utilizing the idea of quantum data structures to construct an efficient method of nesting quantum walks. Surprisingly, only…

Quantum Physics · Physics 2016-05-24 Stacey Jeffery , Robin Kothari , Frederic Magniez

We investigate an application of network centrality measures to portfolio optimization, by generalizing the method in [Pozzi, Di Matteo and Aste, \emph{Spread of risks across financial markets: better to invest in the peripheries},…

Portfolio Management · Quantitative Finance 2024-04-02 Bahar Arslan , Vanni Noferini , Spyridon Vrontos

Given an undirected, weighted graph, with $n$ vertices and $m$ edges, and two special vertices $s$ and $t$, the problem is to find the shortest path between them. We give two bounded-error quantum algorithms with improved runtime in the…

Quantum Physics · Physics 2026-03-20 Adam Wesołowski , Stephen Piddock

The mean and variance of portfolio returns are the standard quantities to measure the expected return and risk of a portfolio. Efficient portfolios that provide optimal trade-offs between mean and variance warrant consideration. To express…

Signal Processing · Electrical Eng. & Systems 2022-12-15 Shengjie Xiu , Xiwen Wang , Daniel P. Palomar

One of the significant breakthroughs in quantum computation is Grover's algorithm for unsorted database search. Recently, the applications of Grover's algorithm to solve global optimization problems have been demonstrated, where unknown…

Quantum Physics · Physics 2017-11-22 Yan Wang