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Quantum computing is a computational paradigm with the potential to outperform classical methods for a variety of problems. Proposed recently, the Quantum Approximate Optimization Algorithm (QAOA) is considered as one of the leading…

Machine Learning · Computer Science 2022-06-16 Sami Khairy , Ruslan Shaydulin , Lukasz Cincio , Yuri Alexeev , Prasanna Balaprakash

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

Portfolio optimization is an important process in finance that consists in finding the optimal asset allocation that maximizes expected returns while minimizing risk. When assets are allocated in discrete units, this is a combinatorial…

Statistical Mechanics · Physics 2022-10-04 Álvaro Rubio-García , Juan José García-Ripoll , Diego Porras

We develop the first quantum algorithm for the constrained portfolio optimization problem. The algorithm has running time $\widetilde{O} \left( n\sqrt{r} \frac{\zeta \kappa}{\delta^2} \log \left(1/\epsilon\right) \right)$, where $r$ is the…

Optimization and Control · Mathematics 2019-08-23 Iordanis Kerenidis , Anupam Prakash , Dániel Szilágyi

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

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

In this paper, we introduce an efficient and end-to-end quantum algorithm tailored for computing the Value-at-Risk (VaR) and conditional Value-at-Risk (CVar) for a portfolio of European options. Our focus is on leveraging quantum…

Quantum Physics · Physics 2024-06-04 Yusen Wu , Jingbo B. Wang , Yuying Li

Variational quantum algorithms (VQAs) are a modern family of quantum algorithms designed to solve optimization problems using a quantum computer. Typically VQAs rely on a feedback loop between the quantum device and a classical optimization…

Quantum Physics · Physics 2022-08-26 Alexey Uvarov

This paper presents a hybrid quantum-classical approach to prime factorization. The proposed algorithm is based on the Variational Quantum Eigensolver (VQE), which employs a classical optimizer to find the ground state of a given…

Quantum Physics · Physics 2025-03-21 Mona Sobhani , Yahui Chai , Tobias Hartung , Karl Jansen

The data classification task is broadly utilized in numerous fields of science and it may be realized by different known approaches (e.g. neural networks). However, in this work, quantum computations were harnessed to solve the problem. We…

Quantum Physics · Physics 2024-04-11 Joanna Wiśniewska , Marek Sawerwain

The Variational Quantum Eigensolver (VQE) algorithm has been developed to target near term Noisy Intermediate Scale Quantum (NISQ) computers as a method to find the eigenvalues of Hamiltonians. Unlike fully quantum algorithms such as…

Quantum Physics · Physics 2026-02-13 Taylor Harville , Rishu Khurana , Vitor F. Grizzi , Cong Liu

In the era of quantum computing, the emergence of quantum computers and subsequent advancements have led to the development of various quantum algorithms capable of solving linear equations and eigenvalues, surpassing the pace of classical…

Quantum Physics · Physics 2024-11-26 Hyunju Lee , Kyungtaek Jun

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

Quantum Variational Circuits (QVCs) are often claimed as one of the most potent uses of both near term and long term quantum hardware. The standard approaches to optimizing these circuits rely on a classical system to compute the new…

Quantum Physics · Physics 2022-02-11 Owen Lockwood

This paper presents how the most recent improvements made on covariance matrix estimation and model order selection can be applied to the portfolio optimisation problem. The particular case of the Maximum Variety Portfolio is treated but…

Applications · Statistics 2018-04-03 Emmanuelle Jay , Eugénie Terreaux , Jean-Philippe Ovarlez , Frédéric Pascal

Hybrid quantum-classical algorithms have been proposed as a potentially viable application of quantum computers. A particular example - the variational quantum eigensolver, or VQE - is designed to determine a global minimum in an energy…

Quantum Physics · Physics 2020-08-05 Alexey Uvarov , Jacob Biamonte , Dmitry Yudin

Variational quantum algorithms (VQAs) provide a promising approach to achieving quantum advantage for practical problems on near-term noisy intermediate-scale quantum (NISQ) devices. Thus far, most studies on VQAs have focused on…

Quantum Physics · Physics 2023-10-06 Yutaro Enomoto , Keitaro Anai , Kenta Udagawa , Shuntaro Takeda

The variational quantum power method (VQPM), which adapts the classical power iteration algorithm for quantum settings, has shown promise for eigenvector estimation and optimization on quantum hardware. In this work, we provide a…

Quantum Physics · Physics 2026-01-26 Ammar Daskin

The Quantum Approximate Optimization Algorithm (QAOA) is a quantum algorithm proposed for Noisy Intermediate-Scale Quantum (NISQ) devices and is regarded as a promising approach to combinatorial optimization problems, with potential…

Quantum Physics · Physics 2026-02-26 Shintaro Yamamura , Satoshi Watanabe , Masaya Kunimi , Kazuhiro Saito , Tetsuro Nikuni

Variational quantum eigensolver (VQE) is regarded as a promising candidate of hybrid quantum-classical algorithm for the near-term quantum computers. Meanwhile, VQE is confronted with a challenge that statistical error associated with the…

Quantum Physics · Physics 2023-12-12 Ken N. Okada , Keita Osaki , Kosuke Mitarai , Keisuke Fujii