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

• URL: http://arxiv.org/abs/2602.23976v1
• Date: Fri, 27 Feb 2026 12:36:14 GMT
• Title: Large-scale portfolio optimization on a trapped-ion quantum computer
• Authors: Alejandro Gomez Cadavid, Ananth Kaushik, Pranav Chandarana, Miguel Angel Lopez-Ruiz, Gaurav Dev, Willie Aboumrad, Qi Zhang, Claudio Girotto, Sebastián V. Romero, Martin Roetteler, Enrique Solano, Marco Pistoia, Narendra N. Hegade,
• Abstract summary: We present an end-to-end pipeline for large-scale portfolio selection with cardinality constraints.<n>We experimentally demonstrate it on trapped-ion quantum processors using hardware-aware decomposition.
• Score: 32.24411362086563
• License: http://creativecommons.org/licenses/by/4.0/
• Abstract: 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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