A Quantum Circuit Design for Quantum Portfolio Optimization Problem
Vu Truc Quynh, Vu Tuan Hai, Vu Trung Duong Le, Pham Hoai Luan, Yasuhiko Nakashima · 2024
Portfolio optimization is an important problem in the quantum finance field, which aims to find optimal investment strategies that strike a balance between high returns and minimize risks with some constraints related. In the context of millions of assets, quantum methods such as Variational Quantum Eigensolver and Quantum Approximate Optimization Algorithm offer logarithm complexity compared with quadratic complexity in classical methods. However, those methods are designed for a massive range of applications and are not specified for any particular problem. Therefore, in this research, we present a quantum circuit design called QPO that has more functions for portfolio optimization, such as switch mode. We first tested the proposed circuit on 97 assets from 30 April 2023 to 30 June 2023. The results compared with classical solutions are consistent with an average Hamming distance 0.092.