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We develop a deep reinforcement learning framework for dynamic portfolio optimization that combines a Dirichlet policy with cross-sectional attention mechanisms. The Dirichlet formulation ensures that portfolio weights are always feasible,…

Computational Engineering, Finance, and Science · Computer Science 2025-10-09 Pei Xue , Yuanchun Ye

In this study, we address the challenge of portfolio optimization, a critical aspect of managing investment risks and maximizing returns. The mean-CVaR portfolio is considered a promising method due to today's unstable financial market…

Portfolio Management · Quantitative Finance 2023-09-22 Kei Nakagawa , Masaya Abe , Seiichi Kuroki

Hybrid algorithms that combine quantum and classical resources have become commonplace in quantum computing. The variational quantum eigensolver (VQE) is routinely used to solve prototype problems. Currently, hybrid algorithms use no more…

Quantum Physics · Physics 2024-08-27 Manpreet Singh Jattana

Crypto-currency markets are known to exhibit inefficiencies, which presents opportunities for profitable cyclic transactions or arbitrage, where one currency is traded for another in a way that results in a net gain without incurring any…

Quantum Physics · Physics 2023-08-04 Gines Carrascal , Beatriz Roman , Guillermo Botella , Alberto del Barrio

Solving real-world optimization problems with quantum computing requires choosing between a large number of options concerning formulation, encoding, algorithm and hardware. Finding good solution paths is challenging for end users and…

Solving optimisation problems is a promising near-term application of quantum computers. Quantum variational algorithms leverage quantum superposition and entanglement to optimise over exponentially large solution spaces using an…

Quantum Physics · Physics 2022-10-13 Edric Matwiejew , Jason Pye , Jingbo B. Wang

With the recent rise of Machine Learning as a candidate to partially replace classic Financial Mathematics methodologies, we investigate the performances of both in solving the problem of dynamic portfolio optimization in continuous-time,…

Portfolio Management · Quantitative Finance 2019-10-29 Babak Mahdavi-Damghani , Konul Mustafayeva , Stephen Roberts , Cristin Buescu

Finance is one of the promising field for industrial application of quantum computing. In particular, quantum algorithms for calculation of risk measures such as the value at risk and the conditional value at risk of a credit portfolio have…

Quantum Physics · Physics 2022-01-28 Koichi Miyamoto

This work proposes a unified framework for portfolio allocation, covering both asset selection and optimization, based on a multiple-hypothesis predict-then-optimize approach. The portfolio is modeled as a structured ensemble, where each…

Portfolio Management · Quantitative Finance 2025-11-19 Alejandro Rodriguez Dominguez , Muhammad Shahzad , Xia Hong

Cybersecurity in telecommunication networks often leads to hard combinatorial optimization problems that are challenging to solve with classical methods. This work investigates the practical feasibility of using quantum annealing to address…

Quantum Physics · Physics 2026-01-05 Ali Abbassi , Yann Dujardin , Eric Gourdin , Philippe Lacomme , Caroline Prodhon

Quantum computing has the potential to surpass the capabilities of current classical computers when solving complex problems. Combinatorial optimization has emerged as one of the key target areas for quantum computers as problems found in…

Quantum Physics · Physics 2023-07-27 Juan Giraldo , José Ossorio , Norha M. Villegas , Gabriel Tamura , Ulrike Stege

We establish the first axiomatic theory for diversification indices using six intuitive axioms: non-negativity, location invariance, scale invariance, rationality, normalization, and continuity. The unique class of indices satisfying these…

Risk Management · Quantitative Finance 2024-07-03 Xia Han , Liyuan Lin , Ruodu Wang

We present a framework wherein the trajectory optimization problem (or a problem involving calculus of variations) is formulated as a search problem in a discrete space. A distinctive feature of our work is the treatment of discretization…

Optimization and Control · Mathematics 2022-12-22 Alok Shukla , Prakash Vedula

We propose a hybrid quantum-classical algorithm for approximating the ground state and ground state energy of a Hamiltonian. Once the Ansatz has been decided, the quantum part of the algorithm involves the calculation of two overlap…

Quantum Physics · Physics 2020-10-13 Kishor Bharti

Quantum computing is becoming strategically relevant to finance because several core financial bottlenecks are already defined by combinatorial search, expectation estimation, rare-event analysis, representation learning, and long-horizon…

Computational Finance · Quantitative Finance 2026-04-10 Hui Gong , Akash Sedai , Thomas Schroeder , Francesca Medda

Recently, reinforcement learning has achieved remarkable results in various domains, including robotics, games, natural language processing, and finance. In the financial domain, this approach has been applied to tasks such as portfolio…

Computational Finance · Quantitative Finance 2025-08-07 Caio de Souza Barbosa Costa , Anna Helena Reali Costa

This thesis focuses on the intersection of mathematical and computational optimization and quantum information. Main contributions are open-source software code: A hybrid approach mixing "traditional" nonconvex and convex methods can make…

Quantum Physics · Physics 2025-12-19 Benjamin Desef

The advent of quantum algorithms has initiated a discourse on the potential for quantum speedups for optimization problems. However, several factors still hinder a practical realization of the potential benefits. These include the lack of…

In the pursuit of achieving near-term quantum advantage for combinatorial optimization problems, the Quantum Approximate Optimization Algorithm (QAOA) and the Variational Quantum Eigensolver (VQE) are the primary methods of interest, but…

Quantum Physics · Physics 2025-03-06 Adelina Bärligea , Benedikt Poggel , Jeanette Miriam Lorenz

This work is a benchmark study for quantum-classical computing method with a real-world optimization problem from industry. The problem involves scheduling and balancing jobs on different machines, with a non-linear objective function. We…

Quantum Physics · Physics 2024-08-06 Abhishek Awasthi , Nico Kraus , Florian Krellner , David Zambrano
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