Scaling Portfolio Diversification with Quantum Circuit Cutting Techniques

Fuente: arXiv
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Autori principali: Soloviev, Vicente P., Romero, Antonio Márquez, Kirsopp, Josh, Krompiec, Michal
Natura: Preprint
Pubblicazione: 2025
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author Soloviev, Vicente P.
Romero, Antonio Márquez
Kirsopp, Josh
Krompiec, Michal
author_facet Soloviev, Vicente P.
Romero, Antonio Márquez
Kirsopp, Josh
Krompiec, Michal
contents 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.
format Preprint
id arxiv_https___arxiv_org_abs_2506_08947
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Scaling Portfolio Diversification with Quantum Circuit Cutting Techniques
Soloviev, Vicente P.
Romero, Antonio Márquez
Kirsopp, Josh
Krompiec, Michal
Quantum Physics
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.
title Scaling Portfolio Diversification with Quantum Circuit Cutting Techniques
topic Quantum Physics
url https://arxiv.org/abs/2506.08947