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We investigate a hybrid quantum-classical solution method to the mean-variance portfolio optimization problems. Starting from real financial data statistics and following the principles of the Modern Portfolio Theory, we generate…

Quantum Physics · Physics 2019-07-01 Davide Venturelli , Alexei Kondratyev

This work investigates a case study of using physical-based sonification of Quadratic Unconstrained Binary Optimization (QUBO) problems, optimized by the Variational Quantum Eigensolver (VQE) algorithm. The VQE approximates the solution of…

In this paper, we introduce a quantum-enhanced algorithm for simulation-based optimization. Simulation-based optimization seeks to optimize an objective function that is computationally expensive to evaluate exactly, and thus, is…

Quantum Physics · Physics 2021-03-08 Julien Gacon , Christa Zoufal , Stefan Woerner

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

This work studies the variational quantum eigensolver algorithm, designed to determine the ground state of a quantum mechanical system by combining classical and quantum hardware. Methods of reducing the number of required qubit…

Quantum Physics · Physics 2022-03-01 R. J. P. T. de Keijzer , V. E. Colussi , B. Škorić , S. J. J. M. F. Kokkelmans

Quantum computing brings a promise of new approaches into computational quantum chemistry. While universal, fault-tolerant quantum computers are still not available, we want to utilize today's noisy quantum processors. One of their flagship…

Variational quantum eigensolver~(VQE) typically optimizes variational parameters in a quantum circuit to prepare eigenstates for a quantum system. Its applications to many problems may involve a group of Hamiltonians, e.g., Hamiltonian of a…

Quantum Physics · Physics 2021-01-19 Zhan-Hao Yuan , Tao Yin , Dan-Bo Zhang

Quantum computing has gained a lot of attention recently, and scientists have seen potential applications in this field using quantum computing for Cryptography and Communication to Machine Learning and Healthcare. Protein folding has been…

Quantum Physics · Physics 2022-11-16 Hasan Mustafa , Sai Nandan Morapakula , Prateek Jain , Srinjoy Ganguly

Portfolio optimization is an inseparable part of strategic asset allocation at the Czech National Bank. Quantum computing is a new technology offering algorithms for that problem. The capabilities and limitations of quantum computers with…

General Economics · Economics 2023-03-06 Martin Vesely

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

Variational quantum eigensolver(VQE) typically minimizes energy with hybrid quantum-classical optimization, which aims to find the ground state. Here, we propose a VQE by minimizing energy variance, which is called as variance-VQE(VVQE).…

Quantum Physics · Physics 2020-06-30 Dan-Bo Zhang , Zhan-Hao Yuan , Tao Yin

The first quantum computers are expected to perform well at quadratic optimisation problems. In this paper a quadratic problem in finance is taken, the Portfolio Optimisation problem. Here, a set of assets is chosen for investment, such…

Portfolio Management · Quantitative Finance 2020-12-03 Frank Phillipson , Harshil Singh Bhatia

In recent years, Variational Quantum Algorithms (VQAs) have emerged as a promising approach for solving optimization problems on quantum computers in the NISQ era. However, one limitation of VQAs is their reliance on fixed-structure…

Quantum Physics · Physics 2026-03-03 Gloria Turati , Maurizio Ferrari Dacrema , Paolo Cremonesi

One of the problems in quantitative finance that has received the most attention is the portfolio optimization problem. Regarding its solving, this problem has been approached using different techniques, with those related to quantum…

Artificial Intelligence · Computer Science 2023-09-28 Eneko Osaba , Guillaume Gelabert , Esther Villar-Rodriguez , Antón Asla , Izaskun Oregi

Optimal portfolio allocation is often formulated as a constrained risk problem, where one aims to minimize a risk measure subject to some performance constraints. This paper presents new Bayesian Optimization algorithms for such constrained…

Portfolio Management · Quantitative Finance 2025-03-25 Robert Millar , Jinglai Li

Combinatorial optimization problems are ubiquitous in industry. In addition to finding a solution with minimum cost, problems of high relevance involve a number of constraints that the solution must satisfy. Variational quantum algorithms…

Effectively encoding inequality constraints is a primary obstacle in applying quantum algorithms to financial optimization. A quantum model for Markowitz portfolio optimization is presented that resolves this by embedding slack variables…

Optimization and Control · Mathematics 2026-01-08 Pablo Thomassin , Guillaume Guerard , Sonia Djebali , Vincent Marc Lambert

We study the optimal portfolio allocation problem from a Bayesian perspective using value at risk (VaR) and conditional value at risk (CVaR) as risk measures. By applying the posterior predictive distribution for the future portfolio…

Portfolio Management · Quantitative Finance 2020-12-04 Taras Bodnar , Mathias Lindholm , Vilhelm Niklasson , Erik Thorsén

The thesis deals with Quantum Algorithms for solving Hard Constrained Optimization Problems. It shows how quantum computers can solve difficult everyday problems such as finding the best schedule for social workers or the path of a robot…

Quantum Physics · Physics 2022-03-01 Parfait Atchade-Adelomou

High-dimensional portfolio optimization faces significant computational challenges under complex constraints, with traditional optimization methods struggling to balance convergence speed and global exploration capability. To address this,…

Neural and Evolutionary Computing · Computer Science 2026-04-06 Mingyang Yu , Jiaqi Zhang , Haorui Yang , Adam Slowik , Jun Zhang , Jing Xu