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Use Cases of Quantum Optimization for Finance

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Credible Asset Allocation, Optimal Transport Methods, and Related Topics (TES 2022)

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 429))

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Abstract

In this paper we briefly review two recent use-cases of quantum optimization algorithms applied to hard problems in finance and economy. Specifically, we discuss the prediction of financial crashes as well as dynamic portfolio optimization. We comment on the different types of quantum strategies to carry on these optimizations, such as those based on quantum annealers, universal gate-based quantum processors, and quantum-inspired Tensor Networks.

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Acknowledgements

Thanks to Christophe Jurczak, Pedro Luis Uriarte, Pedro Muñoz-Baroja, Creative Destruction Lab, BIC-Gipuzkoa, DIPC, Ikerbasque, and Basque Government for constant support. We extend special thanks to our collaborators Francesco Benfenati, Beñat Mencia Uranga, and Samuel Palmer, for stimulating discussions and interesting ideas.

Author information

Authors and Affiliations

  1. Multiverse Computing, Banting Institute, Toronto, ON, M5G 1L5, Canada

    Samuel Mugel

  2. Multiverse Computing, Parque Cientifico y Tecnologico de Gipuzkoa, Paseo de Miramón 170, 20014, Donostia-San Sebastián, Spain

    Enrique Lizaso & Román Orús

  3. Donostia International Physics Center, Paseo Manuel de Lardizabal 4, 20018, Donostia-San Sebastián, Spain

    Román Orús

  4. Ikerbasque Foundation for Science, Maria Diaz de Haro 3, 48013, Bilbao, Spain

    Román Orús

Authors
  1. Samuel Mugel
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  2. Enrique Lizaso
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  3. Román Orús
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Corresponding author

Correspondence to Samuel Mugel .

Editor information

Editors and Affiliations

  1. Faculty of Economics, Chiang Mai University, Chiang Mai, Thailand

    Songsak Sriboonchitta

  2. Department of Computer Science, University of Texas, El Paso, TX, USA

    Vladik Kreinovich

  3. Faculty of Economics, Center of Excellence in Econometrics, Chiang Mai University, Chiang Mai, Thailand

    Woraphon Yamaka

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Mugel, S., Lizaso, E., Orús, R. (2022). Use Cases of Quantum Optimization for Finance. In: Sriboonchitta, S., Kreinovich, V., Yamaka, W. (eds) Credible Asset Allocation, Optimal Transport Methods, and Related Topics. TES 2022. Studies in Systems, Decision and Control, vol 429. Springer, Cham. https://doi.org/10.1007/978-3-030-97273-8_15

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