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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

In this paper, we consider the portfolio optimization problem in a financial market under a general utility function. Empirical results suggest that if a significant market fluctuation occurs, invested wealth tends to have a notable change…

Portfolio Management · Quantitative Finance 2022-01-26 Minglian Lin , Indranil SenGupta

Quantum algorithms offer a compelling new avenue for addressing difficult NP-complete optimization problems, such as the Generalized Assignment Problem (GAP). Given the operational constraints of contemporary Noisy Intermediate-Scale…

Quantum Physics · Physics 2025-11-05 Carlo Mastroianni , Francesco Plastina , Jacopo Settino , Andrea Vinci

We propose a technique for optimizing parameterized circuits in variational quantum algorithms based on the probabilistic tensor sampling optimization. This method allows one to relax random initialization issues or heuristics for…

Quantum Physics · Physics 2024-02-01 G. V. Paradezhenko , A. A. Pervishko , D. Yudin

Solving large-scale robust portfolio optimization problems is challenging due to the high computational demands associated with an increasing number of assets, the amount of data considered, and market uncertainty. To address this issue, we…

Computational Finance · Quantitative Finance 2024-08-16 Chung-Han Hsieh , Jie-Ling Lu

We explore the utilization of higher-order discretization techniques in optimizing the gate count needed for quantum computer based solutions of partial differential equations. To accomplish this, we present an efficient approach for…

Quantum Physics · Physics 2024-12-30 Boris Arseniev , Dmitry Guskov , Richik Sengupta , Igor Zacharov

We propose a faster digital quantum algorithm for portfolio optimization using the digitized-counterdiabatic quantum optimization (DCQO) paradigm in the impulse regime, that is, where the counterdiabatic terms are dominant. Our approach…

Genetic algorithms are highly effective optimization techniques for many computationally challenging problems, including combinatorial optimization tasks like portfolio optimization. Quantum computing has also shown potential in addressing…

Emerging Technologies · Computer Science 2025-04-28 Mohammad Kashfi Haghighi , Matthieu Fortin-Deschênes , Christophe Pere , Mickaël Camus

Traditional approaches to portfolio optimization, often rooted in Modern Portfolio Theory and solved via quadratic programming or evolutionary algorithms, struggle with scalability or flexibility, especially in scenarios involving complex…

Computational Engineering, Finance, and Science · Computer Science 2025-07-23 Christian Oliva , Pedro R. Ventura , Luis F. Lago-Fernández

We present a quantum algorithm that analyzes risk more efficiently than Monte Carlo simulations traditionally used on classical computers. We employ quantum amplitude estimation to evaluate risk measures such as Value at Risk and…

Quantum Physics · Physics 2019-10-31 Stefan Woerner , Daniel J. Egger

We present a classical algorithm to find approximate solutions to instances of quadratic unconstrained binary optimisation. The algorithm can be seen as an analogue of quantum annealing under the restriction of a product state space, where…

Quantum Physics · Physics 2023-02-14 Joseph Bowles , Alexandre Dauphin , Patrick Huembeli , José Martinez , Antonio Acín

We develop and implement automated methods for optimizing quantum circuits of the size and type expected in quantum computations that outperform classical computers. We show how to handle continuous gate parameters and report a collection…

Quantum Physics · Physics 2018-06-04 Yunseong Nam , Neil J. Ross , Yuan Su , Andrew M. Childs , Dmitri Maslov

Variational quantum algorithms are a leading candidate for early applications on noisy intermediate-scale quantum computers. These algorithms depend on a classical optimization outer-loop that minimizes some function of a parameterized…

Variational quantum algorithms have been advocated as promising candidates to solve combinatorial optimization problems on near-term quantum computers. Their methodology involves transforming the optimization problem into a quadratic…

Quantum Physics · Physics 2023-08-01 Zoé Verchère , Sourour Elloumi , Andrea Simonetto

We extend the qubit-efficient encoding presented in [Tan et al., Quantum 5, 454 (2021)] and apply it to instances of the financial transaction settlement problem constructed from data provided by a regulated financial exchange. Our methods…

Quantum Physics · Physics 2024-09-04 Elias X. Huber , Benjamin Y. L. Tan , Paul R. Griffin , Dimitris G. Angelakis

Variational quantum algorithms are a promising class of algorithms that can be performed on currently available quantum computers. In most settings, the free parameters of a variational circuit are optimized using a classical optimizer that…

Quantum Physics · Physics 2023-07-12 Roeland Wiersema , Nathan Killoran

Hybrid quantum-classical algorithms such as the quantum approximate optimization algorithm (QAOA) are considered one of the most promising approaches for leveraging near-term quantum computers for practical applications. Such algorithms are…

Quantum Physics · Physics 2022-06-16 Ruslan Shaydulin , Ilya Safro , Jeffrey Larson

The Quantum Approximate Optimization Algorithm (QAOA) is a promising variational quantum algorithm introduced to tackle classically intractable combinatorial optimization problems. This tutorial offers a comprehensive, first-principles…

Quantum Physics · Physics 2025-11-25 Alessandro Giovagnoli

Combinatorial optimization is widely regarded as a primary application for near-term quantum processors, although a definitive demonstration of the practical quantum advantage remains elusive. Recent studies have reported that both…

Quantum Physics · Physics 2026-05-21 Xian-Zhe Tao , Pavel Mosharev , Man-Hong Yung

We introduce a variational quantum solver for combinatorial optimizations over $m=\mathcal{O}(n^k)$ binary variables using only $n$ qubits, with tunable $k>1$. The number of parameters and circuit depth display mild linear and sublinear…

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