SAPO: Improving the Scalability and Accuracy of Quantum Linear Solver for Portfolio Optimization

Portfolio optimization is one of the most important financial problem, suffering from huge computational pressure due to arithmetic complexity. Quantum computing offers polynomial or even exponential speedup that turns out to be a promising approach. However, existing quantum methods is fundamentally limited by either poor scalability or insufficient accuracy. In this paper, we propose SAPO, which formally articulates the quantum circuit that seamlessly integrates financial theory and historical data characteristics with quantum algebra. The circuit design is extended from the HHL algorithm incorporating mean-variance theory, which promotes scalability by equivalent transformation. Then, we present a min-max eigenvalue model that leverages historical financial information to refine parameter settings with high accuracy. Experiments conducted on market data demonstrate that SAPO can effectively reduce the complexity by $\mathbf{3 6. 9 4 \%}$ compared to basic HHL [1], [2] and improve the accuracy by $1.46 \times$ compared to hybrid HHL [3].

Authors

Institutions

Publication Details

Published
2025-06-22
DOI
https://doi.org/10.1109/dac63849.2025.11133130
Primary Topic
Financial Markets and Investment Strategies
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

SAPO: Improving the Scalability and Accuracy of Quantum Linear Solver for Portfolio Optimization

Xiaoming Sun, Hengrui Chen, Meng Xi, Tingju Zhu et al.
Financial Markets and Investment Strategies
article

SAPO: Improving the Scalability and Accuracy of Quantum Linear Solver for Portfolio Optimization

Xiaoming Sun, Hengrui Chen, Meng Xi, Tingju Zhu, Jianwei Yin, Liqiang Lu, Jiajun Chen, Yuhang Chen, Jinshan Zhang
article en

Abstract

Portfolio optimization is one of the most important financial problem, suffering from huge computational pressure due to arithmetic complexity. Quantum computing offers polynomial or even exponential speedup that turns out to be a promising approach. However, existing quantum methods is fundamentally limited by either poor scalability or insufficient accuracy. In this paper, we propose SAPO, which formally articulates the quantum circuit that seamlessly integrates financial theory and historical data characteristics with quantum algebra. The circuit design is extended from the HHL algorithm incorporating mean-variance theory, which promotes scalability by equivalent transformation. Then, we present a min-max eigenvalue model that leverages historical financial information to refine parameter settings with high accuracy. Experiments conducted on market data demonstrate that SAPO can effectively reduce the complexity by $\mathbf{3 6. 9 4 \%}$ compared to basic HHL [1], [2] and improve the accuracy by $1.46 \times$ compared to hybrid HHL [3].

Chinese Academy of Sciences (CN), Peking University (CN), Zhejiang University (CN)
Openalex Percentile: Top 68%
Financial Markets and Investment Strategies
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.