Solving Portfolio Optimization Problems using Adiabatic Quantum Computing

Solving Portfolio Optimization Problems using Adiabatic Quantum Computing | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Solving Portfolio Optimization Problems using Adiabatic Quantum Computing Bartlomiej Kolodziejczyk This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6986668/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study explores the application of adiabatic quantum computing to portfolio optimization, a critical problem in finance. By formulating the problem as a Quadratic Unconstrained Binary Optimization (QUBO) model, the study integrates constraints such as expected return, transaction cost, and Environmental, Social, and Governance (ESG) scores. Simulations using D-Wave’s quantum annealer demonstrate the feasibility of optimizing portfolios comprising hundreds of assets with reduced computational time compared to classical methods. While current quantum devices face limitations in precision, this work lays the foundation for leveraging quantum technologies in financial optimization. Adiabatic quantum computing Portfolio optimization Quantum computing Quadratic Unconstrained Binary Optimization. Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6986668","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":491808873,"identity":"52baf161-a531-4935-a199-6264d03099b7","order_by":0,"name":"Bartlomiej Kolodziejczyk","email":"data:image/png;base64,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","orcid":"","institution":"Australian National University","correspondingAuthor":true,"prefix":"","firstName":"Bartlomiej","middleName":"","lastName":"Kolodziejczyk","suffix":""}],"badges":[],"createdAt":"2025-06-26 23:08:08","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6986668/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6986668/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":90023163,"identity":"aea6b010-1f45-46ad-9227-04da18efff83","added_by":"auto","created_at":"2025-08-27 13:38:30","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":378605,"visible":true,"origin":"","legend":"","description":"","filename":"SolvingPortfolioOptimizationProblemsusingAdiabaticQuantumComputing.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6986668/v1_covered_7c5e63b9-5b52-4a5f-9e5a-87e142b69041.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Solving Portfolio Optimization Problems using Adiabatic Quantum Computing","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Adiabatic quantum computing, Portfolio optimization, Quantum computing, Quadratic Unconstrained Binary Optimization.","lastPublishedDoi":"10.21203/rs.3.rs-6986668/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6986668/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study explores the application of adiabatic quantum computing to portfolio optimization, a critical problem in finance. 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