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End-to-End Portfolio Optimization with Quantum Annealing

Published: April 10, 2025 | arXiv ID: 2504.08843v1

By: Sai Nandan Morapakula , Sangram Deshpande , Rakesh Yata and more

Potential Business Impact:

Makes investments grow faster and smarter.

With rapid technological progress reshaping the financial industry, quantum technology plays a critical role in advancing risk management, asset allocation, and financial strategies. Realizing its full potential requires overcoming challenges like quantum hardware limits, algorithmic stability, and implementation barriers. This research explores integrating quantum annealing with portfolio optimization, highlighting quantum methods' ability to enhance investment strategy efficiency and speed. Using hybrid quantum-classical models, the study shows combined approaches effectively handle complex optimization better than classical methods. Empirical results demonstrate a portfolio increase of 200,000 Indian Rupees over the benchmark. Additionally, using rebalancing leads to a portfolio that also surpasses the benchmark value.

Country of Origin
🇺🇸 United States

Page Count
9 pages

Category
Physics:
Quantum Physics