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Portfolio optimization is a fundamental problem in finance that aims to determine the optimal allocation of assets within a portfolio to maximize returns while minimizing risk. It can be formulated as a Quadratic Unconstrained Binary…

Quantum Physics · Physics 2025-08-27 Anbang Wang , Zhonggang Lv , Zhenyuan Ma , Dunbo Cai , Zhihong Zhang

Portfolio optimization is a cornerstone of financial decision-making, traditionally relying on classical algorithms to balance risk and return. Recent advances in quantum computing offer a promising alternative, leveraging quantum…

Quantum Physics · Physics 2025-11-27 Vicente P. Soloviev , Michal Krompiec

Quantum algorithms have gained increasing attention for addressing complex combinatorial problems in finance, notably portfolio optimization. This study systematically benchmarks two prominent variational quantum approaches, Variational…

Quantum Physics · Physics 2025-12-05 Nouhaila Innan , Ayesha Saleem , Alberto Marchisio , Muhammad Shafique

Accurate prediction of mRNA secondary structure is critical for understanding gene expression, translation efficiency, and advancing mRNA-based therapeutics. However, the combinatorial complexity of possible foldings, especially in long…

The presence of stochastic elements in combinatorial optimization problems makes them particularly challenging, as such problems quickly become intractable for classical computers even at relatively small sizes. In this work, we propose a…

The VQE algorithm has turned out to be quite expensive to run given the way we currently access quantum processors (i.e. over the cloud). In order to alleviate this issue, we introduce Quantum Sampling Regression (QSR), an alternative…

Quantum Physics · Physics 2020-12-07 Pedro Rivero , Ian C. Cloët , Zack Sullivan

In this paper we show how to implement in a simple way some complex real-life constraints on the portfolio optimization problem, so that it becomes amenable to quantum optimization algorithms. Specifically, first we explain how to obtain…

Portfolio Management · Quantitative Finance 2021-08-23 Samuel Palmer , Serkan Sahin , Rodrigo Hernandez , Samuel Mugel , Roman Orus

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 study the performance and resource usage of the variational quantum factoring (VQF) algorithm for different instance sizes and optimization algorithms. Our simulations show better chance of finding the ground state when using VQE rather…

Quantum Physics · Physics 2022-08-16 Vivian Phan , Arttu Pönni , Matti Raasakka , Ilkka Tittonen

This paper presents a Quantum Reinforcement Learning (QRL) solution to the dynamic portfolio optimization problem based on Variational Quantum Circuits. The implemented QRL approaches are quantum analogues of the classical…

Machine Learning · Computer Science 2026-01-29 Vincent Gurgul , Ying Chen , Stefan Lessmann

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…

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

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

We present a detailed study of portfolio optimization using different versions of the quantum approximate optimization algorithm (QAOA). For a given list of assets, the portfolio optimization problem is formulated as quadratic binary…

In this note, we describe an experiment on portfolio optimization using the Quadratic Unconstrained Binary Optimization (QUBO) formulation. The dataset we use is taken from a real-world problem for which a classical solution is currently…

Quantum processors promise a paradigm shift in high-performance computing which needs to be assessed by accurate benchmarking measures. In this work, we introduce a new benchmark for variational quantum algorithm (VQA), recently proposed as…

Quantum Physics · Physics 2018-05-09 Walter Vinci , Alireza Shabani

Variational quantum algorithms (VQAs) utilize a hybrid quantum-classical architecture to recast problems of high-dimensional linear algebra as ones of stochastic optimization. Despite the promise of leveraging near- to intermediate-term…

Quantum Physics · Physics 2022-11-08 Oliver Knitter , James Stokes , Shravan Veerapaneni

Analytical and practical evidence indicates the advantage of quantum computing solutions over classical alternatives. Quantum-based heuristics relying on the variational quantum eigensolver (VQE) and the quantum approximate optimization…

Quantum Physics · Physics 2023-01-05 Sarthak Gupta , Vassilis Kekatos

Variational Quantum Algorithms (VQAs) are promising methods for solving combinatorial optimization problems on noisy intermediate-scale quantum (NISQ) devices. However, benchmarking VQAs is difficult due to their stochastic behavior and the…

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
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