Searcharxiv⌕ Search
Home/Archive/arXiv

arXiv · 2305.01480

Exploring the synergistic potential of quantum annealing and gate model computing for portfolio optimization

Naman Jain·M Girish Chandra
View original source ↗Read source document ↗Export metadata ↓

Abstract

Portfolio optimization is one of the most studied problems for demonstrating the near-term applications of quantum computing. However, large-scale problems cannot be solved on today's quantum hardware. In this work, we extend upon a study to use the best of both quantum annealing and gate-based quantum computing systems to enable solving large-scale optimization problems efficiently on the available hardware. The existing work uses a method called Large System Sampling Approximation (LSSA) that involves dividing the large problem into several smaller problems and then combining the multiple solutions to approximate the solution to the original problem. This paper introduces a novel technique to modify the sampling step of LSSA. We divide the portfolio optimization problem into sub-systems of smaller sizes by selecting a diverse set of assets that act as representatives of the entire market and capture the highest correlations among assets. We conduct tests on real-world stock data from the Indian stock market on up to 64 assets. Our experimentation shows that the hybrid approach performs at par with the traditional classical optimization methods with a good approximation ratio. We also demonstrate the effectiveness of our approach on a range of portfolio optimization problems of different sizes. We present the effects of different parameters on the proposed method and compare its performance with the earlier work. Our findings suggest that hybrid annealer-gate quantum computing can be a valuable tool for portfolio managers seeking to optimize their investment portfolios in the near future.

Explore related subjects

quant-ph

Keep this discovery

BibTeXRIS

Naman Jain, M Girish Chandra. 2023-05-02. Exploring the synergistic potential of quantum annealing and gate model computing for portfolio optimization. https://arxiv.org/abs/2305.01480

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related papers

arXiv2026

Probing the Error-Mitigation Threshold with Matrix Product States

Quantum error mitigation relies on accurate noise characterization, but mismatches between the actual and characterized noise can be amplified and drive a sharp threshold between successful and failed mitigation. In random circuits, this threshold maps onto a random-field Ising transition, but previous exact numerics were limited to small one-dimensional and all-to-all systems, leaving explicit two-dimensional architectures unresolved. We develop a fixed-bond-dimension matrix-product-state method for the replicated transfer dynamics that extends threshold calculations beyond exact propagation while retaining the finite-size signatures of the transition. At system sizes beyond previous exact studies, we recover the predicted absence of a threshold for quenched disorder in 1D, obtain a sharper annealed all-to-all critical point, and resolve architecture-dependent finite-depth thresholds in 2D square and heavy-hex circuits. These results establish replicated tensor-network dynamics as a practical tool for probing error-mitigation thresholds in large and higher-dimensional noisy circuits.

quant-ph↗
arXiv2026

Low-cost algorithm-to-execution framework for surface-code quantum computing

The execution of useful quantum algorithms on fault-tolerant processors requires more than a mapping from logical gates to encoded operations: the spatial organization, non-Clifford resource supply, and execution schedule must also be determined while keeping physical overhead within practical limits. Although the theoretical hierarchy from logical circuits to fault-tolerant operations is well established, these implementation choices are often specified and optimized separately. Here we develop a low-cost algorithm-to-execution framework for surface-code quantum computing. From hierarchical algorithm descriptions, it constructs dependency-preserving logical schedules and an executable workload capturing logical interactions, operation parallelism, and time-resolved non-Clifford demand, thereby linking logical computation to surface-code organization, resource-state preparation, and fault-tolerant execution in a traceable workflow. We apply the framework to twenty benchmark circuits across seven algorithm families and a hierarchically composed application-scale elliptic-curve discrete-logarithm workload. Physical costs vary substantially even for circuits with similar logical resource counts. Under our direct-rotation calibration, non-Clifford implementation selection reduces space-time volume by up to 241.5 times versus an all-synthesis baseline for the QAOA amplitude-amplification workload. Circuit-specific surface-code layouts reduce routed-latency estimates for all twenty benchmarks; thirteen also reduce space-time volume because communication savings outweigh added spatial overhead. These results show that low-cost fault-tolerant execution depends on computation scheduling and organization, not aggregate logical resource counts alone.

quant-ph↗
arXiv2026

Sample-optimal learning of stabilizer states

It is well-known that learning a pure $n$-qubit stabilizer state $|\psi\rangle$ both requires, and can be accomplished with, access to a number of copies of $|\psi\rangle$ linear in $n$. However, the precise constant coefficient of this scaling does not appear to have been determined. Here we prove that $L_\delta(n)$, the smallest number of copies from which a quantum procedure can identify any stabilizer state with failure probability at most $0<\delta<1/8$, satisfies $n+\lceil\log_2(1/\delta)\rceil-3\leq L_\delta(n)\leq n+\left\lceil\log_2(1/\delta)\right\rceil+4$. We present a polynomial-time quantum learning algorithm that saturates this bound, achieving a constant factor improvement in sample-complexity over previously known approaches. As an immediate corollary, we obtain via the Choi-Jamiolkowski isomorphism an algorithm for learning an unknown $n$-qubit Clifford unitary from $2n+\left\lceil\log_2(1/\delta)\right\rceil+4$ queries, the $n$-dependence of which we show to be optimal. Our proof technique, which involves Fourier analysis on the abelian group $\mathbb{Z}_4^n \times \mathbb{F}_2^{n(n-1)/2}$, seems to be qualitatively different to previous approaches to stabilizer state learning, and may be of some independent interest; in particular, it admits natural generalisations to further problems in quantum learning theory.

quant-ph↗