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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

The Quantum Approximate Optimization Algorithm (QAOA) is a promising approach for programming a near-term gate-based hybrid quantum computer to find good approximate solutions of hard combinatorial problems. However, little is currently…

Quantum Physics · Physics 2018-11-21 Gavin E. Crooks

NP-hard problems are not believed to be exactly solvable through general polynomial time algorithms. Hybrid quantum-classical algorithms to address such combinatorial problems have been of great interest in the past few years. Such…

Quantum Physics · Physics 2024-01-15 Yagnik Chatterjee , Eric Bourreau , Marko J. Rančić

Quantum computers face inherent scaling challenges, a fact that necessitates investigation of distributed quantum computing systems, whereby scaling is achieved through interconnection of smaller quantum processing units. However,…

Quantum Physics · Physics 2026-01-21 Felix Burt , Kuan-Cheng Chen , Kin K. Leung

Optimizing of a portfolio of financial assets is a critical industrial problem which can be approximately solved using algorithms suitable for quantum processing units (QPUs). We benchmark the success of this approach using the Quantum…

Quantum Physics · Physics 2022-02-15 Jack S. Baker , Santosh Kumar Radha

Combinatorial optimization lies at the heart of numerous real-world applications. For a broad category of optimization problems, quantum computing is expected to exhibit quantum speed-up over classic computing. Among various quantum…

Quantum Physics · Physics 2025-09-23 Zixu Wang , Jack Mandell , Yangyang Xu , Jian Shi

One of the problems frequently mentioned as a candidate for quantum advantage is that of selecting a portfolio of financial assets to maximize returns while minimizing risk. In this paper we formulate several real-world constraints for use…

Materials Science · Physics 2022-03-10 Salvatore Certo , Anh Dung Pham , Daniel Beaulieu

Mean-reverting portfolios with few assets, but high variance, are of great interest for investors in financial markets. Such portfolios are straightforwardly profitable because they include a small number of assets whose prices not only…

Optimization and Control · Mathematics 2021-04-19 Ahmad Mousavi , Jinglai Shen

Quantum computers are emerging as a viable alternative to tackle certain computational problems that are challenging for classical computers. With the rapid development of quantum hardware such as those based on trapped ions, there is…

Quantum Physics · Physics 2023-02-07 Saikat Ray Majumder , Annarita Giani , Weiwei Shen , Bogdan Neculaes , Daiwei Zhu , Sonika Johri

Many of the challenges of scaling quantum computer hardware lie at the interface between the qubits and the classical control signals used to manipulate them. Modular ion trap quantum computer architectures address scalability by…

Constrained combinatorial optimization problems are challenging for quantum computing, particularly at utility-relevant scales and on near-term hardware. At the same time, these problems are of practical significance in industry; for…

Building blocks of quantum computers have been demonstrated in small to intermediate-scale systems. As one of the leading platforms, the trapped ion system has attracted wide attention. A significant challenge in this system is to combine…

Quantum Physics · Physics 2020-09-30 Y. -K. Wu , L. -M. Duan

Variational quantum algorithms are believed to be promising for solving computationally hard problems and are often comprised of repeated layers of quantum gates. An example thereof is the quantum approximate optimization algorithm (QAOA),…

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…

Compiling quantum circuits to account for hardware restrictions is an essential part of the quantum computing stack. Circuit compilation allows us to adapt algorithm descriptions into a sequence of operations supported by real quantum…

Quantum Physics · Physics 2025-10-14 Alejandro Villoria , Henning Basold , Alfons Laarman

We propose a sequential minimal optimization method for quantum-classical hybrid algorithms, which converges faster, is robust against statistical error, and is hyperparameter-free. Specifically, the optimization problem of the…

Quantum Physics · Physics 2020-11-04 Ken M. Nakanishi , Keisuke Fujii , Synge Todo

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

Quantum kernel methods leverage a kernel function computed by embedding input information into the Hilbert space of a quantum system. However, large Hilbert spaces can hinder generalization capability, and the scalability of quantum kernels…

Quantum Physics · Physics 2024-04-16 Rodrigo Martínez-Peña , Miguel C. Soriano , Roberta Zambrini

Quantum algorithms can be used to perform unsupervised machine learning tasks like data clustering by mapping the distance between data points to a graph optimization problem (i.e. MAXCUT) and finding optimal solution through energy…

Quantum Physics · Physics 2022-02-08 Daniel Beaulieu , Anh Pham

We audit how much of D-Wave's hybrid quantum-classical portfolio-optimization service is actually quantum. On cardinality-constrained mean-variance-turnover instances spanning N equal to 10 to 640 with a Gurobi MIQP optimality anchor, the…

Quantum Physics · Physics 2026-05-19 Luis Lozano