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We propose a faster digital quantum algorithm for portfolio optimization using the digitized-counterdiabatic quantum optimization (DCQO) paradigm in the impulse regime, that is, where the counterdiabatic terms are dominant. Our approach…

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

Portfolio optimization (PO) is extensively employed in financial services to assist in achieving investment objectives. By providing an optimal asset allocation, PO effectively balances the risk and returns associated with investments.…

Quantum Physics · Physics 2024-07-09 Zhijie Tang , Alex Lu Dou , Arit Kumar Bishwas

In this work, we propose a novel variational quantum approach for solving a class of nonlinear optimal control problems. Our approach integrates Dirac's canonical quantization of dynamical systems with the solution of the ground state of…

Quantum Physics · Physics 2025-05-14 Hirmay Sandesara , Alok Shukla , Prakash Vedula

In this paper we propose a hybrid quantum-classical algorithm for dynamic portfolio optimization with minimal holding period. Our algorithm is based on sampling the near-optimal portfolios at each trading step using a quantum processor, and…

Quantum Physics · Physics 2021-12-07 Samuel Mugel , Mario Abad , Miguel Bermejo , Javier Sanchez , Enrique Lizaso , Roman Orus

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

Financial derivative pricing is a significant challenge in finance, involving the valuation of instruments like options based on underlying assets. While some cases have simple solutions, many require complex classical computational methods…

Computational Finance · Quantitative Finance 2025-05-15 Robert Scriba , Yuying Li , Jingbo B Wang

Solving combinatorial optimization problems using variational quantum algorithms (VQAs) might be a promise application in the NISQ era. However, the limited trainability of VQAs could hinder their scalability to large problem sizes. In this…

Quantum Physics · Physics 2026-05-26 Shengbin Wang , Guihui Li , Zhimin Wang , Zhaoyun Chen , Peng Wang , Yongjian Gu , Yu-Chun Wu , Guo-Ping Guo

Variational quantum eigensolver (VQE) optimizes parameterized eigenstates of a Hamiltonian on a quantum processor by updating parameters with a classical computer. Such a hybrid quantum-classical optimization serves as a practical way to…

Quantum Physics · Physics 2020-03-18 Dan-Bo Zhang , Tao Yin

Portfolio optimization is one of the most studied problems for demonstrating the near-term applications of quantum computing. However, large-scale problems cannot be solved on today's quantum hardware. In this work, we extend upon a study…

Quantum Physics · Physics 2023-05-03 Naman Jain , M Girish Chandra

We investigate the use of quantum computers for building a portfolio out of a universe of U.S. listed, liquid equities that contains an optimal set of stocks. Starting from historical market data, we look at various problem formulations on…

General Finance · Quantitative Finance 2020-07-06 Jeffrey Cohen , Alex Khan , Clark Alexander

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 study the costs and benefits of different quantum approaches to finding approximate solutions of constrained combinatorial optimization problems with a focus on Maximum Independent Set. In the Lagrange multiplier approach we analyze the…

Quantum Physics · Physics 2024-08-13 Zain H. Saleem , Teague Tomesh , Bilal Tariq , Martin Suchara

Many quantum algorithms have daunting resource requirements when compared to what is available today. To address this discrepancy, a quantum-classical hybrid optimization scheme known as "the quantum variational eigensolver" was developed…

Quantum Physics · Physics 2016-02-05 Jarrod R. McClean , Jonathan Romero , Ryan Babbush , Alán Aspuru-Guzik

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

Using quantum devices supported by classical computational resources is a promising approach to quantum-enabled computation. One example of such a hybrid quantum-classical approach is the variational quantum eigensolver (VQE) built to…

Quantum Physics · Physics 2017-04-12 Jarrod R. McClean , Mollie E. Schwartz , Jonathan Carter , Wibe A. de Jong

Discrete combinatorial optimization consists in finding the optimal configuration that minimizes a given discrete objective function. An interpretation of such a function as the energy of a classical system allows us to reduce the…

Quantum Physics · Physics 2015-06-22 Sergio Boixo , Gerardo Ortiz , Rolando Somma

Tracking a financial index boils down to replicating its trajectory of returns for a well-defined time span by investing in a weighted subset of the securities included in the benchmark. Picking the optimal combination of assets becomes a…

Quantum Physics · Physics 2021-10-22 Samuel Fernández-Lorenzo , Diego Porras , Juan José García-Ripoll

In the early fault-tolerant regime, where quantum resources remain limited, hybrid quantum-classical strategies offer one possible route toward quantum advantage. We introduce CANOE, the Classically Assisted Non-Orthogonal Eigensolver, as…

Quantum Physics · Physics 2026-03-16 Jihyeon Park , Collin C. D. Frink , Matthew Otten

Portfolio optimization is one of the most studied optimization problems at the intersection of quantum computing and finance. In this work, we develop the first quantum formulation for a portfolio optimization problem with higher-order…

Quantum Physics · Physics 2026-01-28 Valter Uotila , Julia Ripatti , Bo Zhao