2023
DOI: 10.21203/rs.3.rs-2601946/v1
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Best practices for portfolio optimization by quantum computing, experimented on real quantum devices

Abstract: In finance, portfolio optimization aims at finding optimal investments maximizing a trade-off between return and risks, given some constraints. Classical formulations of this quadratic optimization problem have exact or heuristic solutions, but the complexity scales up as the market dimension increases. Recently, researchers are evaluating the possibility of facing the complexity scaling issue by employing quantum computing. In this paper, the problem is solved using the Variational Quantum Eigensolver (VQE), … Show more

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Cited by 2 publications
(1 citation statement)
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“…To solve issues including the traveling salesman problem, graph coloring, and vehicle routing, QNNs can be used [12]. To effectively identify the best investment strategies and asset allocations, portfolio optimization, a critical activity in finance, can use QNNs [21]. The simultaneous exploration of numerous computational paths by QNNs can greatly accelerate the search for the best solution to certain optimization challenges.…”
Section: Optimization Problemsmentioning
confidence: 99%
“…To solve issues including the traveling salesman problem, graph coloring, and vehicle routing, QNNs can be used [12]. To effectively identify the best investment strategies and asset allocations, portfolio optimization, a critical activity in finance, can use QNNs [21]. The simultaneous exploration of numerous computational paths by QNNs can greatly accelerate the search for the best solution to certain optimization challenges.…”
Section: Optimization Problemsmentioning
confidence: 99%