Large-scale portfolio optimization on a trapped-ion quantum computer

Fuente: arXiv
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Autori principali: Cadavid, Alejandro Gomez, Kaushik, Ananth, Chandarana, Pranav, Lopez-Ruiz, Miguel Angel, Dev, Gaurav, Aboumrad, Willie, Zhang, Qi, Girotto, Claudio, Romero, Sebastián V., Roetteler, Martin, Solano, Enrique, Pistoia, Marco, Hegade, Narendra N.
Natura: Preprint
Pubblicazione: 2026
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author Cadavid, Alejandro Gomez
Kaushik, Ananth
Chandarana, Pranav
Lopez-Ruiz, Miguel Angel
Dev, Gaurav
Aboumrad, Willie
Zhang, Qi
Girotto, Claudio
Romero, Sebastián V.
Roetteler, Martin
Solano, Enrique
Pistoia, Marco
Hegade, Narendra N.
author_facet Cadavid, Alejandro Gomez
Kaushik, Ananth
Chandarana, Pranav
Lopez-Ruiz, Miguel Angel
Dev, Gaurav
Aboumrad, Willie
Zhang, Qi
Girotto, Claudio
Romero, Sebastián V.
Roetteler, Martin
Solano, Enrique
Pistoia, Marco
Hegade, Narendra N.
contents We present an end-to-end pipeline for large-scale portfolio selection with cardinality constraints and experimentally demonstrate it on trapped-ion quantum processors using hardware-aware decomposition. Building on RMT-based correlation-matrix denoising and community detection, we identify correlated asset groups and introduce a correlation-guided greedy splitting scheme that caps each cluster by the executable qubit budget. Each cluster defines a hardware-embeddable QUBO subproblem that we solve using bias-field digitized counterdiabatic quantum optimization (BF-DCQO), a non-variational method that avoids classical parameter-training loops. We recombine low-energy candidates into global portfolios and enforce feasibility with a two-stage post-processing routine: fast repair followed by a cardinality-preserving swap local search. We benchmark the workflow on a 250-asset universe taken from the S&P 500 and execute subproblems on a 64-qubit Barium development system similar to the forthcoming IonQ Tempo line. We observe that larger executable subproblem sizes reduce decomposition error and systematically improve final objective values and risk-return trade-offs relative to randomized baselines under identical post-processing. Overall, the results establish a hardware-tested route for scaling financial optimization problems, defined by a trade space in which executable problem size and circuit cost are balanced against the resulting solution quality.
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id arxiv_https___arxiv_org_abs_2602_23976
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Large-scale portfolio optimization on a trapped-ion quantum computer
Cadavid, Alejandro Gomez
Kaushik, Ananth
Chandarana, Pranav
Lopez-Ruiz, Miguel Angel
Dev, Gaurav
Aboumrad, Willie
Zhang, Qi
Girotto, Claudio
Romero, Sebastián V.
Roetteler, Martin
Solano, Enrique
Pistoia, Marco
Hegade, Narendra N.
Quantum Physics
We present an end-to-end pipeline for large-scale portfolio selection with cardinality constraints and experimentally demonstrate it on trapped-ion quantum processors using hardware-aware decomposition. Building on RMT-based correlation-matrix denoising and community detection, we identify correlated asset groups and introduce a correlation-guided greedy splitting scheme that caps each cluster by the executable qubit budget. Each cluster defines a hardware-embeddable QUBO subproblem that we solve using bias-field digitized counterdiabatic quantum optimization (BF-DCQO), a non-variational method that avoids classical parameter-training loops. We recombine low-energy candidates into global portfolios and enforce feasibility with a two-stage post-processing routine: fast repair followed by a cardinality-preserving swap local search. We benchmark the workflow on a 250-asset universe taken from the S&P 500 and execute subproblems on a 64-qubit Barium development system similar to the forthcoming IonQ Tempo line. We observe that larger executable subproblem sizes reduce decomposition error and systematically improve final objective values and risk-return trade-offs relative to randomized baselines under identical post-processing. Overall, the results establish a hardware-tested route for scaling financial optimization problems, defined by a trade space in which executable problem size and circuit cost are balanced against the resulting solution quality.
title Large-scale portfolio optimization on a trapped-ion quantum computer
topic Quantum Physics
url https://arxiv.org/abs/2602.23976