mlsanityData to 14 Oct 2026

End-to-End Portfolio Optimization with Quantum Annealing

arXiv 2504.08843 ↗First posted 10 Apr 2025quant-ph econ.GN math.OCcited by 2

Not on the map. Why?

Abstract (arXiv)

Hybrid-quantum classical optimization has emerged as a promising direction for addressing financial decision problems under current quantum hardware constraints. In this work we present a practical end-to-end portfolio optimization pipeline that combines (i) a continuous mean-variance and Sharpe-ratio formulation, (ii) a QUBO/CQM-based discrete asset selection stage solved using D-Wave's hybrid quantum annealing solver, (iii) classical convex optimization for computing optimal asset weights, and (iv) a quarterly rebalancing mechanism. Rather than claiming quantum advantage, our goal is to evaluate the feasibility and integration of these components within a deployable financial workflow. We empirically compare our hybrid pipeline against a fund manager in real time and indexes used in Indian stock market. The results indicate that the proposed framework can construct diversified portfolios and achieve competitive returns. We also report computational considerations and scalability observations drawn from the hybrid solver behaviour. While the experiments are limited to moderate sized portfolios dictated by current annealing hardware and QUBO embedding constraints, the study illustrates how quantum assisted selection and classical allocation can be combined coherently in a real-world setting. This work emphasizes methodological reproducibility and practical applicability, and aims to serve as a step toward larger-scale financial optimization workflows as quantum annealers continue to mature.

Key facts. Cited by 2 papers in the map (data through 14 Oct 2026). First posted on arXiv 10 Apr 2025.

Builds on

No reference list yet.

Built on by

Cited by year (2026 to 14 Oct)

Citing papers per year: 2025: 1; 2026: 1.

2 papers.