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Related papers: Hot-Starting Quantum Portfolio Optimization

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Quantum optimization algorithms, such as the Quantum Approximate Optimization Algorithm, are emerging as promising heuristics for solving complex combinatorial problems. To improve performance, several extensions to the standard QAOA…

Quantum computing is developing fast. Real world applications are within reach in the coming years. One of the most promising areas is combinatorial optimisation, where the Quadratic Unconstrained Binary Optimisation (QUBO) problem…

Quantum Physics · Physics 2020-07-06 Frank Phillipson , Irina Chiscop

Combinatorial optimization problems are widespread but inherently challenging due to their discrete nature. The primary limitation of existing methods is that they can only access a small fraction of the solution space at each iteration,…

Machine Learning · Statistics 2024-09-27 Hengyuan Ma , Wenlian Lu , Jianfeng Feng

Quantum algorithms have gained increasing attention for addressing complex combinatorial problems in finance, notably portfolio optimization. This study systematically benchmarks two prominent variational quantum approaches, Variational…

Quantum Physics · Physics 2025-12-05 Nouhaila Innan , Ayesha Saleem , Alberto Marchisio , Muhammad Shafique

In this paper, we propose a hybrid framework to solve large-scale permutation-based combinatorial problems effectively using a high-performance quadratic unconstrained binary optimization (QUBO) solver. To do so, transformations are…

Optimization and Control · Mathematics 2021-07-07 Siong Thye Goh , Sabrish Gopalakrishnan , Jianyuan Bo , Hoong Chuin Lau

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 this paper we propose a hybrid quantum-classical algorithm for dynamic portfolio optimization with minimal holding period. Our algorithm is based on sampling the near-optimal portfolios at each trading step using a quantum processor, and…

Quantum Physics · Physics 2021-12-07 Samuel Mugel , Mario Abad , Miguel Bermejo , Javier Sanchez , Enrique Lizaso , Roman Orus

Combinatorial optimization problems are typically formulated using Quadratic Unconstrained Binary Optimization (QUBO), where constraints are enforced through penalty terms that introduce auxiliary variables and rapidly increase Hamiltonian…

Quantum Physics · Physics 2026-02-10 Shashank Sanjay Bhat , Peiyong Wang , Joseph West , Udaya Parampalli

This tutorial offers a quick, hands-on introduction to solving Quadratic Unconstrained Binary Optimization (QUBO) models on currently available quantum computers and their simulators. We cover both IBM and D-Wave machines: IBM utilizes a…

Quantum Physics · Physics 2025-06-18 Arul Mazumder , Sridhar Tayur

We investigate the use of amplitude amplification on the gate-based model of quantum computing as a means for solving combinatorial optimization problems. This study focuses primarily on QUBO (quadratic unconstrained binary optimization)…

Quantum Physics · Physics 2023-02-02 Daniel Koch , Massimiliano Cutugno , Saahil Patel , Laura Wessing , Paul M. Alsing

We solve a multi-period portfolio optimization problem using D-Wave Systems' quantum annealer. We derive a formulation of the problem, discuss several possible integer encoding schemes, and present numerical examples that show high success…

Computational Finance · Quantitative Finance 2016-09-29 Gili Rosenberg , Poya Haghnegahdar , Phil Goddard , Peter Carr , Kesheng Wu , Marcos López de Prado

We propose a hybrid quantum-classical approximate optimization algorithm for photonic quantum computing, specifically tailored for addressing continuous-variable optimization problems. Inspired by counterdiabatic protocols, our algorithm…

Quantum Physics · Physics 2024-10-03 Pranav Chandarana , Koushik Paul , Mikel Garcia-de-Andoin , Yue Ban , Mikel Sanz , Xi Chen

Quantum computing is rapidly advancing, harnessing the power of qubits' superposition and entanglement for computational advantages over classical systems. However, scalability poses a primary challenge for these machines. By implementing a…

To date, research in quantum computation promises potential for outperforming classical heuristics in combinatorial optimization. However, when aiming at provable optimality, one has to rely on classical exact methods like integer…

Quantum Physics · Physics 2025-03-13 Friedrich Wagner , Jonas Nüßlein , Frauke Liers

Quadratic unconstrained binary optimization (QUBO) problems are well-studied, not least because they can be approached using contemporary quantum annealing or classical hardware acceleration. However, due to limited precision and hardware…

Quantum Physics · Physics 2023-07-06 Sascha Mücke , Thore Gerlach , Nico Piatkowski

Portfolio optimization is a primary component of the decision-making process in finance, aiming to tactfully allocate assets to achieve optimal returns while considering various constraints. Herein, we proposed a method that uses the…

Quantum Physics · Physics 2024-12-24 Chansreynich Huot , Kimleang Kea , Tae-Kyung Kim , Youngsun Han

Quantum optimization holds promise for addressing classically intractable combinatorial problems, yet a standardized framework for benchmarking its performance, particularly in terms of solution quality, computational speed, and scalability…

Quantum Physics · Physics 2025-03-20 Monit Sharma , Hoong Chuin Lau

Portfolio optimization under strict cardinality constraints is a combinatorial challenge that defies classical convex optimization techniques, particularly in the context of "Direct Indexing" and ESG-constrained mandates. In the Noisy…

Quantum Physics · Physics 2026-02-17 Javier Mancilla , Theodoros D. Bouloumis , Frederic Goguikian

Systems of linear equations are employed almost universally across a wide range of disciplines, from physics and engineering to biology, chemistry and statistics. Traditional solution methods such as Gaussian elimination become very time…

Quantum Physics · Physics 2019-01-23 Michael L Rogers , Robert L Singleton

Continuous-variable (CV) quantum systems offer a natural framework for continuous optimization through their infinite-dimensional Hilbert spaces. In this paper, we propose the Complex Continuous-Variable Quantum Approximate Optimization…

Quantum Physics · Physics 2026-04-30 Raneem Madani , Abdel Lisser , Zeno Toffano