Quantum-inspired optimization (QIO) has gained attention for leveraging both quantum and classical advantages to enhance search efficiency in solving complex optimization problems on classical computers. While most QIO approaches have shown strong potential in addressing single-objective optimization, real-world problems often involve conflicting objectives, making them inherently multi-objective and challenging to solve. Unlike single-objective optimization, which seeks a single optimal solution, multi-objective optimization aims to obtain a set of Pareto-optimal solutions. This study extends QIO to multi-objective optimization (MoQIO) by incorporating quantum-inspired characteristics and provides an in-depth analysis of its performance. It utilizes quantum superposition and Q-gates to enhance convergence efficiency toward the Pareto front, while leveraging entanglement properties to expand solution diversity. Our results demonstrate that the proposed MoQIO effectively generates a diverse set of optimal portfolio solutions.
Quantum-inspired optimization (QIO) has gained attention for leveraging both quantum and classical advantages to enhance search efficiency in solving complex optimization problems on classical computers. While most QIO approaches have shown strong potential in addressing single-objective optimization, real-world problems often involve conflicting objectives, making them inherently multi-objective and challenging to solve. Unlike single-objective optimization, which seeks a single optimal solution, multi-objective optimization aims to obtain a set of Pareto-optimal solutions. This study extends QIO to multi-objective optimization (MoQIO) by incorporating quantum-inspired characteristics and provides an in-depth analysis of its performance. It utilizes quantum superposition and Q-gates to enhance convergence efficiency toward the Pareto front, while leveraging entanglement properties to expand solution diversity. Our results demonstrate that the proposed MoQIO effectively generates a diverse set of optimal portfolio solutions.
Quantum and quantum-inspired computations have shown remarkable potential in addressing complex optimization problems. Quantum annealing (QA), in particular, has demonstrated effectiveness in solving combinatorial optimization tasks and is gaining increasing attention. Meanwhile, quantuminspired computing (QIC) algorithms offer a promising approach to leveraging quantum principles on classical hardware. This study presents the first integrated hybrid framework that combines the strengths of both quantum and classical computing for multi-objective weighted portfolio optimization, a complex real-world application. In the proposed approach, QA employs scalarization techniques to rapidly approximate the optimal front, while QIC enhances solution diversity through an entanglement move mechanism that uncovers a broader set of non-dominated portfolio solutions. Experimental results indicate that the hybrid approach achieves higher-quality solutions and provides a greater variety of investment options for investors, compared to QA alone and classical multi-objective optimization algorithms. These findings highlight the feasibility and scalability of integrating quantum and classical techniques to effectively address real-world investment optimization challenges.
Quantum-inspired optimization aims to improve the performance of complex optimization problems by incorporating principles from quantum mechanics. This paper explores the application of quantum-like concepts, such as superposition and entanglement, to enhance the efficiency of optimization algorithms. We present a novel quantum-inspired optimization framework designed to address the challenges inherent in complex systems, offering a fundamentally different approach compared to traditional optimization methods. The core mechanism focuses on leveraging these quantum principles to achieve improved solution paths and faster convergence. This research contributes to the advancement of optimization techniques with the potential for significant gains in the solution of challenging problems across diverse fields.
Multi-objective combinatorial optimization requires identifying Pareto-optimal trade-off solutions among conflicting objectives, often making it more demanding than its single-objective counterpart. Although quantum multi-objective optimization methods have begun to emerge, most existing quantum optimization workflows are still built around single-objective or fixed-scalarization settings. Building on existing weighted-sum QAOA approaches to quantum multi-objective optimization, we propose QEMOO, a quantum-enhanced multi-objective optimization framework that combines Pareto-based selection and warm-started QAOA sampling in a multi-round protocol under the same total shot budget. We further introduce a PBI-inspired adaptive direction-update scheme to improve coverage in strongly conflicting benchmark regimes. Across three benchmark stages, QEMOO improves Pareto-front hypervolume over the single-pass weighted-sum QAOA baseline under matched shot budgets, suggesting a practical route toward shot-efficient quantum-assisted multi-objective optimization and its future applications.
Quantum computing is a next-generation computing paradigm that offers potential advantages for addressing complex real-world applications, such as portfolio optimization (PO). Quantum-inspired optimization (QIO) algorithms simulate quantum mechanisms to achieve quantum advantages using classical computers. QIO algorithms can serve as a bridge to realizing preliminary quantum advantages by exploiting classical computation abilities. In a detailed analysis of PO, a domain-dependent optimization technique is proposed combined with an effective QIO, called the entanglement local search-assisted (ELSA) technique. ELSA introduces the novel concept of the entangled neighborhood for PO and assists QIO in accurately searching a potential area, thus significantly promoting the quality of the solution. The entanglement relationship can decrease the degree of freedom searched. The proposed ELSA-QIO technique is employed in a trend ratio-based intelligent system to search for a steady uptrend portfolio in the global G20 markets. This study discusses the expanded markets to demonstrate the superior ability of the proposed QIO method in a vast solution space. Experiments demonstrate that the proposed system outperforms state-of-the-art methods. This study investigates the world's largest markets in-depth and proposes a strategy for global financial management that expands the use of quantum computing.
Quantum three-level qutrit systems can achieve high-fidelity operations and are favorable for quantum error correction, which is crucial in the current NISQ era. Before the advent of fault-tolerant computers, quantum-inspired optimization (QIO) shows potential as a practical near-term application of quantum computing to address real-world problems. Consequently, we have developed a novel encoding mechanism leveraging the quantum three-level qutrit concept to propose a qutrit-based QIO for the quantum finance model. This approach comprehensively addresses financial applications by encoding additional strategic information, unlike traditional methods that only consider binary buy-or-not-buy decisions. In a volatile eco-nomic environment, when the corresponding properties of qutrits are simulated, multiple strategies can be employed to stabilize investment efficiency, including both long-selling (LS) and short-selling (SS) strategies. The experimental results demonstrate that the proposed qutrit-based model can construct a portfolio with superior performance compared to the two single strategies when using real-world financial data. Furthermore, this study reveals that the fluctuations from LS and SS strategies can be complementary within a hybrid strategy, contributing to a significant reduction of risk. The proposed qutrit-based method uses the advantages of quantum behavior in a large solution space, searches for potential solutions efficiently in real-world applications, and aids investors in making an informed decision.
In this study, the portfolio optimization problem is explored, using a combination of classical and quantum computing techniques. The portfolio optimization problem with specific objectives or constraints is often a quadratic optimization problem, due to the quadratic nature of, for example, risk measures. Quantum computing is a promising solution for quadratic optimization problems, as it can leverage quantum annealing and quantum approximate optimization algorithms, which are expected to tackle these problems more efficiently. Quantum computing takes advantage of quantum phenomena like superposition and entanglement. In this paper, a specific problem is introduced, where a portfolio of loans need to be optimized for 2030, considering ‘Return on Capital’ and ‘Concentration Risk’ objectives, as well as a carbon footprint constraint. This paper introduces the formulation of the problem and how it can be optimized using quantum computing, using a reformulation of the problem as a quadratic unconstrained binary optimization (QUBO) problem. Two QUBO formulations are presented, each addressing different aspects of the problem. The QUBO formulation succeeded in finding solutions that met the emission constraint, although classical simulated annealing still outperformed quantum annealing in solving this QUBO, in terms of solutions close to the Pareto frontier. Overall, this paper provides insights into how quantum computing can address complex optimization problems in the financial sector. It also highlights the potential of quantum computing for providing more efficient and robust solutions for portfolio management.