English
Related papers

Related papers: Multiclass Portfolio Optimization via Variational …

200 papers

The variational quantum-classical algorithms are the most promising approach for achieving quantum advantage on near-term quantum simulators. Among these methods, the variational quantum eigensolver has attracted a lot of attention in…

Quantum Physics · Physics 2023-01-24 Chufan Lyu , Xusheng Xu , Man-Hong Yung , Abolfazl Bayat

Portfolio optimization involves determining the optimal allocation of portfolio assets in order to maximize a given investment objective. Traditionally, some form of mean-variance optimization is used with the aim of maximizing returns…

Artificial Intelligence · Computer Science 2024-03-26 Fernando Acero , Parisa Zehtabi , Nicolas Marchesotti , Michael Cashmore , Daniele Magazzeni , Manuela Veloso

Computational aspects of the optimal consumption and investment with the partially observed stochastic volatility of the asset prices are considered. The new quantization approach to filtering - density quantization - is introduced which…

Computational Finance · Quantitative Finance 2010-09-30 Grzegorz Hałaj

Current universal quantum computers have a limited number of noisy qubits. Because of this, it is difficult to use them to solve large-scale complex optimization problems. In this paper we tackle this issue by proposing a quantum…

Quantum Physics · Physics 2023-06-30 Pablo Bermejo , Roman Orus

Classical portfolio optimization methods typically determine an optimal capital allocation through the implicit, yet critical, assumption of statistical time-invariance. Such models are inadequate for real-world markets as they employ…

Statistical Finance · Quantitative Finance 2021-02-02 Bruno Scalzo , Alvaro Arroyo , Ljubisa Stankovic , Danilo P. Mandic

The variational quantum eigensolver (VQE) is a hybrid quantum-classical algorithm designed for current and near-term quantum devices. Despite its initial success, there is a lack of understanding involving several of its key aspects. There…

Quantum Physics · Physics 2023-03-22 Manpreet Singh Jattana , Fengping Jin , Hans De Raedt , Kristel Michielsen

Previously only considered a frontier area of Physics, nowadays quantum computing is one of the fastest growing research field, precisely because of its technological applications in optimization problems, machine learning, information…

Portfolio Management · Quantitative Finance 2022-08-24 Askery Canabarro , Taysa M. Mendonça , Ranieri Nery , George Moreno , Anton S. Albino , Gleydson F. de Jesus , Rafael Chaves

Portfolio optimization is a ubiquitous problem in financial mathematics that relies on accurate estimates of covariance matrices for asset returns. However, estimates of pairwise covariance could be better and calculating time-sensitive…

Portfolio Management · Quantitative Finance 2024-11-12 James S. Cummins , Natalia G. Berloff

The variational quantum eigensolver (VQE), a type of variational quantum algorithm, is a hybrid quantum-classical algorithm to find the lowest-energy eigenstate of a particular Hamiltonian. We investigate ways to optimize the VQE solving…

Quantum Physics · Physics 2024-10-30 Adam Hutchings , Eric Yarnot , Xinpeng Li , Qiang Guan , Ning Xie , Shuai Xu , Vipin Chaudhary

While variational quantum algorithms (VQAs) have demonstrated considerable success in unconstrained optimization, their application to constrained combinatorial problems face a trade-off. Penalty-based methods, despite their circuit…

Quantum Physics · Physics 2026-03-09 Hui-Min Li , Yuan-Liang Han , Zhi-Xi Wang , Shao-Ming Fei

In this paper, we introduce the quantum adaptive distribution search (QuADS), a quantum continuous optimization algorithm that integrates Grover adaptive search (GAS) with the covariance matrix adaptation - evolution strategy (CMA-ES), a…

Quantum Physics · Physics 2024-07-08 Kohei Morimoto , Yusuke Takase , Kosuke Mitarai , Keisuke Fujii

In this work, we deal with the problem of computing a comprehensive front of efficient solutions in multi-objective portfolio optimization problems in presence of sparsity constraints. We start the discussion pointing out some weaknesses of…

Optimization and Control · Mathematics 2025-09-23 Arturo Annunziata , Matteo Lapucci , Pieluigi Mansueto , Davide Pucci

A novel optimisation framework through quadratic nonlinear projection is introduced for credit portfolio when the portfolio risk is measured by Conditional Value-at-Risk (CVaR). The whole optimisation procedure to search toward the optimal…

Portfolio Management · Quantitative Finance 2016-07-20 Boguk Kim , Chulwoo Han , Frank Chongwoo Park

Variational quantum algorithms have found success in the NISQ era owing to their hybrid quantum-classical approach which mitigate the problems of noise in quantum computers. In our study we introduce the dynamic ansatz in the Variational…

Quantum Physics · Physics 2022-02-08 Hrushikesh Patil , Yulun Wang , Predrag Krstic

Advancements in quantum computing are fuelling emerging applications across disciplines, including finance, where quantum and quantum-inspired algorithms can now make market predictions, detect fraud, and optimize portfolios. Expanding this…

Quantum Physics · Physics 2023-01-06 Anna G. Hughes , Jack S. Baker , Santosh Kumar Radha

We suggest a hybrid quantum-classical routine for the NP-hard Electric Vehicle Fleet Charging and Allocation Problem. The original formulation is a Mixed Integer Linear Program with continuous variables and inequality constraints. To…

Investment portfolio optimization is a task conducted in all major financial institutions. The Cardinality Constrained Mean-Variance Portfolio Optimization (CCPO) problem formulation is ubiquitous for portfolio optimization. The challenge…

Computational Engineering, Finance, and Science · Computer Science 2026-01-05 Simon Paquette-Greenbaum , Jiangbo Yu

Variational quantum algorithms stand at the forefront of simulations on near-term and future fault-tolerant quantum devices. While most variational quantum algorithms involve only continuous optimization variables, the representational…

Quantum Physics · Physics 2022-11-03 Jiahao Yao , Haoya Li , Marin Bukov , Lin Lin , Lexing Ying

We introduce a method for solving combinatorial optimization problems on digital quantum computers, where we incorporate auxiliary counterdiabatic (CD) terms into the adiabatic Hamiltonian, while integrating bias terms derived from an…

A diversification quotient (DQ) quantifies diversification in stochastic portfolio models based on a family of risk measures. We study DQ based on expectiles, offering a useful alternative to conventional risk measures such as Value-at-Risk…

Portfolio Management · Quantitative Finance 2024-11-28 Xia Han , Liyuan Lin , Hao Wang , Ruodu Wang