arXiv · 2605.06858
Constrained Counterdiabatic Quantum Approximate Optimization Algorithm for Portfolio Optimization
Abstract
We introduce a counterdiabatic (CD) extension of the Quantum Approximate Optimization Algorithm (QAOA) for constrained portfolio optimization. By incorporating approximate adiabatic gauge potentials generated from nested commutators of the Ising-type portfolio problem Hamiltonian and the Hamming weight-preserving XY mixer Hamiltonian into our variational ansatz, the resulting Constrained Counterdiabatic QAOA (CCD-QAOA) achieves improved optimization performance under realistic budget and risk constraints. Benchmarking against standard XY-mixer QAOA, Grover-mixer QAOA, and penalty-based QAOA formulations, our numerical simulations demonstrate that, for a fixed QAOA depth, our CCD-QAOA approach consistently results in better approximation ratios.
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Jose Falla, Ilya Safro. 2026-05-07. Constrained Counterdiabatic Quantum Approximate Optimization Algorithm for Portfolio Optimization. https://arxiv.org/abs/2605.06858
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