Financial Portfolio Identification Using Graph Algorithms on a Quantum Annealern (Presentation Slides)
Bibliographic record
Abstract
Our dual objectives are to explore how commercially available quantum hardware and algorithms can solve real world problems in finance, and then to compare quantum solutions to their classical counterparts. Specifically, we use the D-Wave quantum annealing computer (D-Wave 2000Q) to address the problem of asset correlation identification for financial portfolio management. Graphical models offer a natural framework to represent asset correlations. Graphs also naturally map to the quantum annealing hardware architecture developed by D-Wave. We explore how graph algorithms can be implemented on the D-Wave 2000Q machine to cluster asset correlations in order to identify various financial portfolios. Numerical experiments are conducted using four quantum/classical algorithm pairs on four real world financial time series data sets spanning 10 years. For the specific algorithms and datasets selected, the quantum solution is competitive with (and sometimes better than) the classical one. However, quantum fails to scale beyond certain levels of data dimensionality. Our study focuses on comparison of solution quality not speedup. Our results suggest specific high-potential directions for future research.
Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.
How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.004 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.001 | 0.001 |
| Bibliometrics | 0.001 | 0.001 |
| Science and technology studies | 0.001 | 0.001 |
| Scholarly communication | 0.001 | 0.002 |
| Open science | 0.001 | 0.001 |
| Research integrity | 0.001 | 0.001 |
| Insufficient payload (model declined to judge) | 0.007 | 0.001 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".