Learning PDEs for Portfolio Optimization with Quantum Physics-Informed Neural Networks
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Quantum Physics arXiv:2604.03346 (quant-ph) [Submitted on 3 Apr 2026] Title:Learning PDEs for Portfolio Optimization with Quantum Physics-Informed Neural Networks Authors:Letao Wang, Abdel Lisser, Sreejith Sreekumar, Zeno Toffano View a PDF of the paper titled Learning PDEs for Portfolio Optimization with Quantum Physics-Informed Neural Networks, by Letao Wang and 2 other authors View PDF Abstract:Partial differential equations (PDEs) play a crucial role in financial mathematics, particularly in portfolio optimization, and solving them using classical numerical or neural network methods has always posed significant challenges. Here, we investigate the potential role of quantum circuits for solving PDEs. We design a parameterized quantum circuit (PQC) for implementing a polynomial based on tensor rank decomposition, reducing the quantum resource complexity from exponential to polynomial when the corresponding tensor rank is moderate. Building on this circuit, we develop a Quantum Physics-Informed Neural Network (QPINN) and a Quantum-inspired PINN, both of which guarantee the existence of an approximation of the PDE solution, and this approximation is represented as a polynomial that incorporates tensor rank decomposition. Despite using 80 times fewer parameters in experiments, our quantum models achieve higher accuracy and faster convergence than a classical fully connected PINN when solving the PDE for the Merton portfolio optimization problem, which determines the optimal investment fraction between a risky and a risk-free asset. Our quantum models further outperform a classical PINN constructed to share the same inductive bias, providing experimental evidence of quantum-induced improvement and highlighting a resource-efficient pathway toward classical and near-term quantum PDE solvers. Subjects: Quantum Physics (quant-ph) Cite as: arXiv:2604.03346 [quant-ph] (or arXiv:2604.03346v1 [quant-ph] for this version) https://doi.org/10.48550/arXiv.2604.03346 Focus to learn more arXiv-issued DOI via DataCite Submission history From: Letao Wang [view email] [v1] Fri, 3 Apr 2026 10:24:14 UTC (9,658 KB) Full-text links: Access Paper: View a PDF of the paper titled Learning PDEs for Portfolio Optimization with Quantum Physics-Informed Neural Networks, by Letao Wang and 2 other authorsView PDFTeX Source view license Current browse context: quant-ph new | recent | 2026-04 References & Citations INSPIRE HEP NASA ADSGoogle Scholar Semantic Scholar export BibTeX citation Loading... BibTeX formatted citation × loading... Data provided by: Bookmark Bibliographic Tools Bibliographic and Citation Tools Bibliographic Explorer Toggle Bibliographic Explorer (What is the Explorer?) Connected Papers Toggle Connected Papers (What is Connected Papers?) Litmaps Toggle Litmaps (What is Litmaps?) scite.ai Toggle scite Smart Citations (What are Smart Citations?) Code, Data, Media Code, Data and Media Associated with this Article alphaXiv Toggle alphaXiv (What is alphaXiv?) Links to Code Toggle CatalyzeX Code Finder for Papers (What is CatalyzeX?) DagsHub Toggle DagsHub (What is DagsHub?) GotitPub Toggle Gotit.pub (What is GotitPub?) Huggingface Toggle Hugging Face (What is Huggingface?) ScienceCast Toggle ScienceCast (What is ScienceCast?) Demos Demos Replicate Toggle Replicate (What is Replicate?) Spaces Toggle Hugging Face Spaces (What is Spaces?) Spaces Toggle TXYZ.AI (What is TXYZ.AI?) Related Papers Recommenders and Search Tools Link to Influence Flower Influence Flower (What are Influence Flowers?) Core recommender toggle CORE Recommender (What is CORE?) Author Venue Institution Topic About arXivLabs arXivLabs: experimental projects with community collaborators arXivLabs is a framework that allows collaborators to develop and share new arXiv features directly on our website. Both individuals and organizations that work with arXivLabs have embraced and accepted our values of openness, community, excellence, and user data privacy. arXiv is committed to these values and only works with partners that adhere to them. Have an idea for a project that will add value for arXiv's community? Learn more about arXivLabs. Which authors of this paper are endorsers? | Disable MathJax (What is MathJax?)