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Related papers: Hot-Starting Quantum Portfolio Optimization

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Combinatorial optimization problems that arise in science and industry typically have constraints. Yet the presence of constraints makes them challenging to tackle using both classical and quantum optimization algorithms. We propose a new…

This paper proposes a highly efficient quantum algorithm for portfolio optimisation targeted at near-term noisy intermediate-scale quantum computers. Recent work by Hodson et al. (2019) explored potential application of hybrid…

Quantum Physics · Physics 2021-07-29 N. Slate , E. Matwiejew , S. Marsh , J. B. Wang

Recently, several researchers proposed portfolio optimization as a potential use case for quantum optimization. However, the literature is lacking an extensive benchmark quantifying the potential of quantum computers for portfolio…

Quantum Physics · Physics 2025-09-23 Eric Stopfer , Friedrich Wagner

Solving optimisation problems is a promising near-term application of quantum computers. Quantum variational algorithms leverage quantum superposition and entanglement to optimise over exponentially large solution spaces using an…

Quantum Physics · Physics 2022-10-13 Edric Matwiejew , Jason Pye , Jingbo B. Wang

Advances in quantum algorithms suggest a tentative scaling advantage on certain combinatorial optimization problems. Recent work, however, has also reinforced the idea that barren plateaus render variational algorithms ineffective on large…

Quantum Physics · Physics 2025-03-14 Tim Bode , Krish Ramesh , Tobias Stollenwerk

In this paper we show how to implement in a simple way some complex real-life constraints on the portfolio optimization problem, so that it becomes amenable to quantum optimization algorithms. Specifically, first we explain how to obtain…

Portfolio Management · Quantitative Finance 2021-08-23 Samuel Palmer , Serkan Sahin , Rodrigo Hernandez , Samuel Mugel , Roman Orus

Quadratic Unconstrained Binary Optimization (QUBO) is a broad class of optimization problems with many practical applications. To solve its hard instances in an exact way, known classical algorithms require exponential time and several…

Quantum Physics · Physics 2021-01-21 Gian Giacomo Guerreschi

Academic and industrial sectors have been engaged in a fierce competition to develop quantum technologies, fueled by the explosive advancements in quantum hardware. While universal quantum computers have been shown to support up to hundreds…

Quantum Physics · Physics 2024-07-04 Amedeo Bertuzzi , Davide Ferrari , Antonio Manzalini , Michele Amoretti

The Quantum Approximate Optimization Algorithm (QAOA) is a quantum algorithm that finds approximate solutions to problems in combinatorial optimization, especially those that can be formulated as a Quadratic Unconstrained Binary…

Quantum Physics · Physics 2025-09-23 Bikrant Bhattacharyya , Michael Capriotti , Reuben Tate

The Quantum Approximate Optimization Algorithm (QAOA) has shown promise in solving combinatorial optimization problems by leveraging quantum computational power. We propose a simple approach, the Two-Step QAOA, which aims to improve the…

Quantum Physics · Physics 2025-02-25 Yuichiro Minato

We present a quantum algorithm for portfolio optimisation. Specifically, We present an end-to-end quantum approximate optimisation algorithm (QAOA) to solve the discrete global minimum variance portfolio (DGMVP) model. This model finds a…

Quantum Physics · Physics 2024-10-22 Haomu Yuan , Christopher K. Long , Hugo V. Lepage , Crispin H. W. Barnes

Optimizing objective functions stands to benefit significantly from leveraging quantum computers, promising enhanced solution quality across various application domains in the future. However, harnessing the potential of quantum solvers…

Quantum Physics · Physics 2025-10-15 Deborah Volpe , Nils Quetschlich , Mariagrazia Graziano , Giovanna Turvani , Robert Wille

There exist numerous problems in nature inherently described by finite $D$-dimensional states. Formulating these problems for execution on qubit-based quantum hardware requires mapping the qudit Hilbert space to that of multiqubit which may…

Quantum Physics · Physics 2026-02-23 Shakib Daryanoosh

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

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

Quantum optimization algorithms hold the promise of solving classically hard, discrete optimization problems in practice. The requirement of encoding such problems in a Hamiltonian realized with a finite -- and currently small -- number of…

Quantum Physics · Physics 2023-07-10 Yifeng Rocky Zhu , David Joseph , Cong Ling , Florian Mintert

In the field of quantum computing, combinatorial optimization problems are typically addressed using QUBO (Quadratic Unconstrained Binary Optimization) solvers. However, these solvers are often insufficient for tackling higher-order…

Quantum Physics · Physics 2024-07-24 Yuichiro Minato

Quantum optimization solvers typically rely on one-variable-to-one-qubit mapping. However, the low qubit count on current quantum computers is a major obstacle in competing against classical methods. Here, we develop a qubit-efficient…

Quantum Physics · Physics 2026-03-24 Bhuvanesh Sundar , Maxime Dupont

Recent advances in quantum computing and the increasing availability of quantum hardware have substantially enhanced the practical relevance of quantum approaches to discrete optimization. Among these, the Quadratic Unconstrained Binary…

Quantum Physics · Physics 2026-02-12 Felix P. Broesamle , Stefan Nickel

Quantum approaches to combinatorial optimization problems (COPs) are often limited by the resource demands of Quadratic Unconstrained Binary Optimization (QUBO) encodings, which enlarge circuits through penalty terms and increase qubit and…

Quantum Physics · Physics 2025-11-25 Frederik Koch , Shahram Panahiyan , Rick Mukherjee , Joseph Doetsch , Dieter Jaksch