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The quantum approximate optimization algorithm (QAOA) generates an approximate solution to combinatorial optimization problems using a variational ansatz circuit defined by parameterized layers of quantum evolution. In theory, the…

Quantum Physics · Physics 2021-09-24 Rebekah Herrman , Phillip C. Lotshaw , James Ostrowski , Travis S. Humble , George Siopsis

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 annealing is a method developed to solve combinatorial optimization problems by utilizing quantum bits. Solving such problems corresponds to minimizing a cost function defined over binary variables. However, in many practical cases,…

Quantum Physics · Physics 2025-06-26 Seiya Endo , Shohei Kawakatsu , Hiromichi Matsuyama , Kohei Suzuki , Yuichiro Matsuzaki

We introduce a quantum algorithm that produces approximate solutions for combinatorial optimization problems. The algorithm depends on a positive integer p and the quality of the approximation improves as p is increased. The quantum circuit…

Quantum Physics · Physics 2014-11-17 Edward Farhi , Jeffrey Goldstone , Sam Gutmann

Analytical and practical evidence indicates the advantage of quantum computing solutions over classical alternatives. Quantum-based heuristics relying on the variational quantum eigensolver (VQE) and the quantum approximate optimization…

Quantum Physics · Physics 2023-01-05 Sarthak Gupta , Vassilis Kekatos

Combinatorial optimization is considered a promising class of problems in which quantum computers can show significant advantages. However, problems of practical relevance typically have more variables than current or foreseeable quantum…

Quantum Physics · Physics 2025-12-23 Mathias Schmid , Naeimeh Mohseni , Michael J. Hartmann

Quantum Portfolios of quantum algorithms encoded on qbits have recently been reported. In this paper a discussion of the continuous variables version of quantum portfolios is presented. A risk neutral valuation model for options dependent…

General Finance · Quantitative Finance 2015-03-14 Fredrick Michael

Classical Monte Carlo algorithms can theoretically be sped up on a quantum computer by employing amplitude estimation (AE). To realize this, an efficient implementation of state-dependent functions is crucial. We develop a straightforward…

Quantum Physics · Physics 2024-03-26 Mark-Oliver Wolf , Tom Ewen , Ivica Turkalj

Quantum algorithms are of great interest for their possible use in optimization problems. In particular, variational algorithms that use classical counterparts to optimize parameters hold promise for use in currently existing devices.…

Quantum Physics · Physics 2026-05-13 Bruno Oziel Fernandez , Rodrigo Bloot , Marcelo Moret

We present a method to split quantum circuits of variational quantum algorithms (VQAs) to allow for parallel training and execution, that maximally exploits the limited number of qubits in hardware to solve large problem instances. We apply…

Quantum Physics · Physics 2023-04-07 Michele Cattelan , Sheir Yarkoni

The quantum approximate optimization algorithm (QAOA) transforms a simple many-qubit wavefunction into one which encodes a solution to a difficult classical optimization problem. It does this by optimizing the schedule according to which…

Quantum Physics · Physics 2022-06-29 Yunlong Yu , Chenfeng Cao , Carter Dewey , Xiang-Bin Wang , Nic Shannon , Robert Joynt

Quantum computers show potential for achieving computational advantage over classical computers, with many candidate applications in combinatorial optimisation. We present an application level benchmarking framework for near-term quantum…

It is hoped that quantum computers will offer advantages over classical computers for combinatorial optimization. Here, we introduce a feedback-based strategy for quantum optimization, where the results of qubit measurements are used to…

Quantum Physics · Physics 2023-01-05 Alicia B. Magann , Kenneth M. Rudinger , Matthew D. Grace , Mohan Sarovar

This paper introduces a non-variational quantum algorithm designed to solve a wide range of combinatorial optimisation problems, including constrained and non-binary problems. The algorithm leverages an engineered interference process…

Quantum Physics · Physics 2024-08-02 Tavis Bennett , Lyle Noakes , Jingbo Wang

This paper considers the finite horizon portfolio rebalancing problem in terms of mean-variance optimization, where decisions are made based on current information on asset returns and transaction costs. The study's novelty is that the…

Methodology · Statistics 2025-08-21 Qingliang Fan , Marcelo C. Medeiros , Hanming Yang , Songshan Yang

Clustering financial assets based on return correlations is a fundamental task in portfolio optimization and statistical arbitrage. However, classical clustering methods often fall short when dealing with signed correlation structures,…

Quantum Physics · Physics 2026-02-25 Shivam Sharma , Supreeth Mysore Venkatesh , Pushkin Kachroo

The Quantum Approximate Optimization Algorithm (QAOA) has been suggested as a promising candidate for the solution of combinatorial optimization problems. Yet, whether - or under what conditions - it may offer an advantage compared to…

Quantum Physics · Physics 2025-04-14 Vanessa Dehn , Martin Zaefferer , Gerhard Hellstern , Florentin Reiter , Thomas Wellens

Many investment models in discrete or continuous-time settings boil down to maximizing an objective of the quantile function of the decision variable. This quantile optimization problem is known as the quantile formulation of the original…

Portfolio Management · Quantitative Finance 2022-01-07 Zuo Quan Xu

Real-world optimization problems must undergo a series of transformations before becoming solvable on current quantum hardware. Even for a fixed problem, the number of possible transformation paths -- from industry-relevant formulations…

Applications such as simulating complicated quantum systems or solving large-scale linear algebra problems are very challenging for classical computers due to the extremely high computational cost. Quantum computers promise a solution,…