We propose a faster digital quantum algorithm for portfolio optimization using the digitized counterdiabatic quantum optimization paradigm in the impulse regime, that is, where the counterdiabatic terms are dominant. Our approach notably reduces the circuit depth requirement of the algorithm and enhances the solution accuracy, making it suitable for current quantum processors. We apply this protocol to a real-case scenario of portfolio optimization with 20 assets, using purely quantum and hybrid classical-quantum paradigms. We demonstrate the advantages of our protocol using up to 20 qubits on an IonQ trapped-ion quantum computer. By benchmarking our method against the standard quantum approximate optimization algorithm and finite-time digitized adiabatic algorithms, we obtain a significant reduction in the circuit depth by factors of 2.5 to 40, while minimizing the dependence on the classical optimization subroutine. Besides portfolio optimization, the proposed method is applicable to a large class of combinatorial optimization problems.
We propose a faster digital quantum algorithm for portfolio optimization using the digitized counterdiabatic quantum optimization paradigm in the impulse regime, that is, where the counterdiabatic terms are dominant. Our approach notably reduces the circuit depth requirement of the algorithm and enhances the solution accuracy, making it suitable for current quantum processors. We apply this protocol to a real-case scenario of portfolio optimization with 20 assets, using purely quantum and hybrid classical-quantum paradigms. We demonstrate the advantages of our protocol using up to 20 qubits on an IonQ trapped-ion quantum computer. By benchmarking our method against the standard quantum approximate optimization algorithm and finite-time digitized adiabatic algorithms, we obtain a significant reduction in the circuit depth by factors of 2.5 to 40, while minimizing the dependence on the classical optimization subroutine. Besides portfolio optimization, the proposed method is applicable to a large class of combinatorial optimization problems.
We consider digitized-counterdiabatic quantum computing as an advanced paradigm to approach quantum advantage for industrial applications in the NISQ era. We apply this concept to investigate a discrete mean-variance portfolio optimization problem, showing its usefulness in a key finance application. Our analysis shows a drastic improvement in the success probabilities of the resulting digital quantum algorithm when approximate counterdiabatic techniques are introduced. Along these lines, we discuss the enhanced performance of our methods over variational quantum algorithms like QAOA and DC-QAOA.
We introduce a method for solving combinatorial optimization problems on digital quantum computers, where we incorporate auxiliary counterdiabatic (CD) terms into the adiabatic Hamiltonian, while integrating bias terms derived from an iterative digitized counterdiabatic quantum algorithm. We call this protocol bias-field digitized counterdiabatic quantum optimization (BF-DCQO). Designed to effectively tackle large-scale combinatorial optimization problems, BF-DCQO demonstrates resilience against the limitations posed by the restricted coherence times of current quantum processors and shows clear enhancement even in the presence of noise. Additionally, our purely quantum approach eliminates the dependency on classical optimization required in hybrid classical-quantum schemes, thereby circumventing the trainability issues often associated with variational quantum algorithms. Through the analysis of an all-to-all connected general Ising spin-glass problem, we exhibit a polynomial scaling enhancement in ground-state success probability compared to traditional DCQO and finite-time adiabatic quantum optimization methods. Furthermore, it achieves scaling improvements in ground-state success probabilities, increasing by up to two orders of magnitude, and offers an average 1.3 × better approximation ratio than the quantum approximate optimization algorithm for the problem sizes studied. We validate these findings through experimental implementations on both trapped-ion quantum computers and superconducting processors, tackling a maximum weighted independent set problem with 36 qubits and a spin glass on a heavy-hexagonal lattice with 100 qubits, respectively. These results mark a significant advancement in gate-based quantum computing, employing a fully quantum algorithmic approach.
Abstract We introduce a hardware-specific, problem-dependent digital-analog quantum algorithm of a counterdiabatic quantum dynamics tailored for optimization problems. Specifically, we focus on trapped-ion architectures, taking advantage from global Mølmer–Sørensen gates as the analog interactions complemented by digital gates, both of which are available in the state-of-the-art technologies. We show an optimal configuration of analog blocks and digital steps leading to a substantial reduction in circuit depth compared to the purely digital approach. This implies that, using the proposed encoding, we can address larger optimization problem instances, requiring more qubits, while preserving the coherence time of current devices. Furthermore, we study the minimum gate fidelity required by the analog blocks to outperform the purely digital simulation, finding that it is below the best fidelity reported in the literature. To validate the performance of the digital-analog encoding, we tackle the maximum independent set problem, showing that it requires fewer resources compared to the digital case. This hybrid co-design approach paves the way towards quantum advantage for efficient solutions of quantum optimization problems.
Portfolio optimization (PO) plays a central role in finance, encompassing both resource allocation and risk management. While numerous algorithms have been developed for continuous-variable PO, the inclusion of large, indivisible assets such as real estate transforms the task into a combinatorial optimization problem, which is NP-hard for classical computers. This study explores using quantum-classical hybrid algorithms for multi-discretized portfolio optimization, addressing the needs of real-world applications. We propose a flexible theoretical model that can solve PO problems with various types of discrete assets and constraints, which is compatible with both quantum and classical computing paradigms. Then, we use the D-Wave quantum processor and classical solver to determine optimal investment strategies. Experimental results indicate that the hybrid quantum algorithm outperforms both classical computing methods and quantum annealing algorithms in terms of return and risk management. This research enhances quantum computing applications in finance and provides insights into future algorithm design.
The digital version of adiabatic quantum computing enhanced by counterdiabatic driving, known as digitized counterdiabatic quantum computing, has emerged as a paradigm that opens the door to fast and low-depth algorithms. In this work, we explore the extension of this paradigm to high-dimensional systems. Specifically, we consider qutrits in the context of quadratic problems, obtaining the qutrit Hamiltonian codifications and the counterdiabatic drivings. Our findings show that qutrits can improve the solution quality up to 90 times compared to the qubit counterpart. We tested our proposal on 1000 random instances of the multiway number partitioning, max 3-cut, and portfolio optimization problems, demonstrating that, in general, without prior knowledge, it is better to use qutrits and, apparently, high-dimensional systems in general instead of qubits. Finally, considering the state-of-the-art quantum platforms, we show the experimental feasibility of our high-dimensional counterdiabatic quantum algorithms at least in a fully digital form. This work paves the way for the efficient codification of optimization problems in high-dimensional spaces and their efficient implementation using counterdiabatic quantum computing.
We present an end-to-end pipeline for large-scale portfolio selection with cardinality constraints and experimentally demonstrate it on trapped-ion quantum processors using hardware-aware decomposition. Building on RMT-based correlation-matrix denoising and community detection, we identify correlated asset groups and introduce a correlation-guided greedy splitting scheme that caps each cluster by the executable qubit budget. Each cluster defines a hardware-embeddable QUBO subproblem that we solve using bias-field digitized counterdiabatic quantum optimization (BF-DCQO), a non-variational method that avoids classical parameter-training loops. We recombine low-energy candidates into global portfolios and enforce feasibility with a two-stage post-processing routine: fast repair followed by a cardinality-preserving swap local search. We benchmark the workflow on a 250-asset universe taken from the S&P 500 and execute subproblems on a 64-qubit Barium development system similar to the forthcoming IonQ Tempo line. We observe that larger executable subproblem sizes reduce decomposition error and systematically improve final objective values and risk-return trade-offs relative to randomized baselines under identical post-processing. Overall, the results establish a hardware-tested route for scaling financial optimization problems, defined by a trade space in which executable problem size and circuit cost are balanced against the resulting solution quality.