Quantum Approximate Optimization Algorithms (QAOA) have demonstrated a strong potential in addressing graph-based optimization problems. However, the execution of large-scale quantum circuits remains constrained by the limitations of current quantum hardware. In this work, we introduce QuantCut, an automatic framework for circuit cutting that enables efficient execution of large quantum circuits by decomposing entangling two-qubit gates into manageable sub-circuits. Specifically, we focus on gate-cutting techniques. We apply QuantCut to a 71-qubit QAOA circuit ansatz for portfolio diversification in the S&P 500 stock market, aiming to maximize asset diversification. Our approach iteratively optimizes the expectation value while leveraging circuit-cutting strategies to reduce the qubit register size. To validate our framework, we first conduct experiments on a toy model using quantum noise simulations for the Max-Cut problem, analyzing performance improvements with an increasing number of layers. Subsequently, we extend our methodology to a real-world financial optimization scenario, showing competitive results. The results suggest that QuantCut effectively facilitates large-scale quantum computations with circuit-cutting technologies.
Quantum Approximate Optimization Algorithms (QAOA) have demonstrated a strong potential in addressing graph-based optimization problems. However, the execution of large-scale quantum circuits remains constrained by the limitations of current quantum hardware. In this work, we introduce QuantCut, an automatic framework for circuit cutting that enables efficient execution of large quantum circuits by decomposing entangling two-qubit gates into manageable sub-circuits. Specifically, we focus on gate-cutting techniques. We apply QuantCut to a 71-qubit QAOA circuit ansatz for portfolio diversification in the S&P 500 stock market, aiming to maximize asset diversification. Our approach iteratively optimizes the expectation value while leveraging circuit-cutting strategies to reduce the qubit register size. To validate our framework, we first conduct experiments on a toy model using quantum noise simulations for the Max-Cut problem, analyzing performance improvements with an increasing number of layers. Subsequently, we extend our methodology to a real-world financial optimization scenario, showing competitive results. The results suggest that QuantCut effectively facilitates large-scale quantum computations with circuit-cutting technologies.
Portfolio optimization, a core combinatorial optimization problem in quantitative finance, requires balancing return maximization and risk minimization within discrete asset sets. Classical algorithms often struggle with scalability and local optima traps when handling large-scale asset pools, limiting their practicality in dynamic markets. This study proposes a complete Quantum Approximate Optimization Algorithm (QAOA) workflow for portfolio optimization, from problem formalization to experimental validation. We first transform the portfolio optimization problem into a Quadratic Unconstrained Binary Optimization (QUBO) framework, then design a parameterized QAOA circuit with adjustable layers to balance expressiveness and noise resilience. We propose a methodology using Qiskit for quantum simulation and classical optimizers for parameter tuning, we propose implementing the algorithm on real-world S&P 500 stock data. We could also analyze the impact of quantum hardware noise and propose mitigation strategies, providing actionable insights for Noisy intermediate-scale quantum computing (NISQ)-era implementations. This work bridges quantum algorithm design with real-world financial applications, offering a theoretical framework for quantum-driven portfolio optimization.
Abstract Noisy intermediate-scale quantum (NISQ) devices are restricted by their limited number of qubits and their short decoherence times. An approach addressing these problems is quantum circuit cutting. It decomposes the execution of a large quantum circuit into the execution of multiple smaller quantum circuits with additional classical postprocessing. Since these smaller quantum circuits require fewer qubits and gates, they are more suitable for NISQ devices. To investigate the effect of quantum circuit cutting in a quantum algorithm targeting NISQ devices, we design two experiments using the quantum approximate optimization algorithm (QAOA) for the Maximum Cut (MaxCut) problem and conduct them on state-of-the-art superconducting devices. Our first experiment studies the influence of circuit cutting on the objective function of QAOA, and the second evaluates the quality of results obtained by the whole algorithm with circuit cutting. The results show that circuit cutting can reduce the effects of noise in QAOA, and therefore, the algorithm yields better solutions on NISQ devices.
Portfolio optimization is a cornerstone of financial decision-making, traditionally relying on classical algorithms to balance risk and return. Recent advances in quantum computing offer a promising alternative, leveraging quantum algorithms to efficiently explore complex solution spaces and potentially outperform classical methods in high-dimensional settings. However, conventional quantum approaches typically assume a one-to-one correspondence between qubits and variables (e.g. financial assets), which severely limits the applicability of gate-based quantum systems due to current hardware constraints. As a result, only quantum annealing-like methods have been used in realistic scenarios. In this work, we show how a gate-based variational quantum algorithm can be applied to a real-world portfolio optimization problem by assigning multiple variables per qubit. Specifically, we address a problem involving over 250 variables, where the market graph representing a real stock market is iteratively partitioned into sub-portfolios of highly correlated assets. This approach enables improved scalability compared to traditional variational methods and opens new possibilities for quantum-enhanced financial applications.
Quantum computing has the potential to accelerate various fields by solving specific problems significantly faster than classical computers. Solving more complex problems generally requires a larger number of qubits. However, current quantum devices are constrained by limited qubit counts and environmental noise. Quantum circuit cutting bridges the gap between the theoretical requirements of large quantum circuits and the practical limitations of current quantum hardware by decomposing large circuits into smaller subcircuits. Tang et al. introduced CutQC, a framework that reduces the number of generated subcircuits and reconstructs the complete quantum state with limited memory consumption. Despite these advances, CutQC faces performance bottlenecks in classical postprocessing, leading to long execution times. To address this limitation, we propose QCutSim, an efficient simulation-based framework guided by insights from the postprocessing stage. It improves performance through optimized simulation and reconstruction strategies, along with computational optimizations such as vectorization and parallelization. QCutSim demonstrates that even consumer-grade systems can efficiently simulate 100-qubit circuits and achieves a speedup of up to 5.1x compared to prior work on the same hardware. In the worst-case scenario of reconstructing dense solution circuits, QCutSim achieves a speedup of 6 to 8 orders of magnitude.
Near-term hardware is constrained by high error rates, small qubit counts, and relatively low output fidelity, making the execution of large, high performance quantum circuits difficult. Circuit partitioning (or circuit cutting) has emerged as a promising approach to circumvent these limitations by decomposing circuits into smaller subcircuits at two-qubit interaction points. However, it remains unclear which classes of circuits benefit the most from partitioning and under what hardware conditions it is most effective. In this work, we evaluate the suitability of quantum circuits for partitioning from three perspectives: improving fidelity, enabling distributed execution, and scaling to larger circuit sizes. Specifically, we compare uncut circuit execution against two circuit partitioning approaches: Qiskit's automatic cut finding technique and a custom performance optimized circuit cutting method. We also measure these across GHZ, QFT, brickwork, and random quantum circuits ranging from 4 to 14 qubits, using mean absolute error of expectation values and overall output fidelity. Our results show that partitioning benefits larger, highly interconnected circuits, with our custom method reducing error by up to 55\% and improve fidelity for GHZ circuits, but degrading performance for brickwork circuits at larger scales.
Current quantum computers suffer from a limited number of qubits and high error rates, limiting practical applicability. Different techniques exist to mitigate these effects and run larger algorithms. In this work, we analyze one of these techniques called quantum circuit cutting. With circuit cutting, a quantum circuit is decomposed into smaller sub-circuits, each of which can be run on smaller quantum hardware. We compare the performance of quantum circuit cutting with different cutting strategies, and then apply circuit cutting to a QAOA algorithm. Using simulations, we first show that Randomized Clifford measurements outperform both Pauli and random unitary measurements. Second, we show that circuit cutting has trouble providing correct answers in noisy settings, especially as the number of circuits increases.