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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…

The simulation of quantum dynamics on a digital quantum computer with parameterized circuits has widespread applications in fundamental and applied physics and chemistry. In this context, using the hybrid quantum-classical algorithm,…

Quantum Physics · Physics 2023-07-19 Tangyou Huang , Yongcheng Ding , Léonce Dupays , Yue Ban , Man-Hong Yung , Adolfo del Campo , Xi Chen

Stock portfolio optimization is the process of constant re-distribution of money to a pool of various stocks. In this paper, we will formulate the problem such that we can apply Reinforcement Learning for the task properly. To maintain a…

Machine Learning · Computer Science 2020-12-14 Le Trung Hieu

Our work focuses on deep learning (DL) portfolio optimization, tackling challenges in long-only, multi-asset strategies across market cycles. We propose training models with limited regime data using pre-training techniques and leveraging…

Portfolio Management · Quantitative Finance 2026-01-14 Brandon Luo , Jim Skufca

The maturation of analytical derivative theory over the past few decades has enabled classical electronic structure theory to provide accurate and efficient predictions of a wide variety of observable properties. However, classical…

Quantum Physics · Physics 2019-06-21 Robert M. Parrish , Edward G. Hohenstein , Peter L. McMahon , Todd J. Martinez

The Quantum Alternating Operator Ansatz is a generalization of the Quantum Approximate Optimization Algorithm (QAOA) designed for finding approximate solutions to combinatorial optimization problems with hard constraints. In this paper, we…

Quantum Physics · Physics 2021-07-02 Jeremy Cook , Stephan Eidenbenz , Andreas Bärtschi

Quantum computing offers an alternative paradigm for addressing combinatorial optimization problems compared to classical computing. Despite recent hardware improvements, the execution of empirical quantum optimization experiments at scales…

Quantum variational optimization has been posed as an alternative to solve optimization problems faster and at a larger scale than what classical methods allow. In this paper we study systematically the role of entanglement, the structure…

Quantum Physics · Physics 2021-12-30 Pablo Díez-Valle , Diego Porras , Juan José García-Ripoll

Artificial intelligence is transforming financial investment decision-making frameworks, with deep reinforcement learning demonstrating substantial potential in robo-advisory applications. This paper addresses the limitations of traditional…

Portfolio Management · Quantitative Finance 2025-02-24 Gang Huang , Xiaohua Zhou , Qingyang Song

We propose a divide-and-conquer method for the quantum-classical hybrid algorithm to solve larger problems with small-scale quantum computers. Specifically, we concatenate a variational quantum eigensolver (VQE) with a reduction in the…

Quantum Physics · Physics 2022-01-26 Keisuke Fujii , Kaoru Mizuta , Hiroshi Ueda , Kosuke Mitarai , Wataru Mizukami , Yuya O. Nakagawa

Combinatorial optimization is considered a promising class of problems in which quantum computers can show significant advantages. However, problems of practical relevance typically have more variables than current or foreseeable quantum…

Quantum Physics · Physics 2025-12-23 Mathias Schmid , Naeimeh Mohseni , Michael J. Hartmann

Portfolio optimization involves selecting asset weights to minimize a risk-reward objective, such as the portfolio variance in the classical minimum-variance framework. Sparse portfolio selection extends this by imposing a cardinality…

Machine Learning · Statistics 2025-05-16 Sarat Moka , Matias Quiroz , Vali Asimit , Samuel Muller

This research paper delves into the application of Deep Reinforcement Learning (DRL) in asset-class agnostic portfolio optimization, integrating industry-grade methodologies with quantitative finance. At the heart of this integration is our…

Artificial Intelligence · Computer Science 2024-03-14 Philip Ndikum , Serge Ndikum

Harnessing the full power of nascent quantum processors requires the efficient management of a limited number of quantum bits with finite lifetime. Hybrid algorithms leveraging classical resources have demonstrated promising initial results…

Classical Monte Carlo algorithms can theoretically be sped up on a quantum computer by employing amplitude estimation (AE). To realize this, an efficient implementation of state-dependent functions is crucial. We develop a straightforward…

Quantum Physics · Physics 2024-03-26 Mark-Oliver Wolf , Tom Ewen , Ivica Turkalj

We present a quantum algorithm for portfolio optimization. We discuss the market data input, the processing of such data via quantum operations, and the output of financially relevant results. Given quantum access to the historical record…

Quantum Physics · Physics 2018-11-12 Patrick Rebentrost , Seth Lloyd

We propose an iterative gradient-based algorithm to efficiently solve the portfolio selection problem with multiple spectral risk constraints. Since the conditional value at risk (CVaR) is a special case of the spectral risk measure, our…

Portfolio Management · Quantitative Finance 2015-03-26 Carlos Abad , Garud Iyengar

We present a hybrid classical-quantum algorithm to solve optimization problems in current quantum computers, whose basic idea is to assist variational quantum eigensolvers (VQE) with adiabatic change of the Hamiltonian. The rational for…

Quantum Physics · Physics 2018-06-07 A. Garcia-Saez , J. I. Latorre

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…

In this study, we propose a new method for constrained combinatorial optimization using variational quantum circuits. Quantum computers are considered to have the potential to solve large combinatorial optimization problems faster than…

Quantum Physics · Physics 2025-07-15 Hyakka Nakada , Kotaro Tanahashi , Shu Tanaka
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