Performance Comparison of QAOA Mixers for Ternary Portfolio Optimization
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Quantum Physics arXiv:2602.21562 (quant-ph) [Submitted on 25 Feb 2026] Title:Performance Comparison of QAOA Mixers for Ternary Portfolio Optimization Authors:Shintaro Yamamura, Satoshi Watanabe, Masaya Kunimi, Kazuhiro Saito, Tetsuro Nikuni View a PDF of the paper titled Performance Comparison of QAOA Mixers for Ternary Portfolio Optimization, by Shintaro Yamamura and 4 other authors View PDF Abstract:The Quantum Approximate Optimization Algorithm (QAOA) is a quantum algorithm proposed for Noisy Intermediate-Scale Quantum (NISQ) devices and is regarded as a promising approach to combinatorial optimization problems, with potential applications in the financial sector. In this study, we apply QAOA to the portfolio optimization problem, which is one of the central challenges in financial engineering. A portfolio consists of a combination of multiple assets, and the portfolio optimization problem aims to determine the optimal asset allocation by balancing expected return and risk. In the context of quantum optimization, portfolio optimization is often formulated using discrete variables. Unlike conventional binary formulations, we consider a ternary portfolio optimization problem that accounts for three states-holding, not holding, and short selling-and compare its performance using different mixer operators. Specifically, we implement QAOA with the standard mixer and several XY Mixers (XY Ring, XY Parity Ring, XY Full, and QAMPA), and conducted simulations using real data based on the German stock index (DAX 30) for portfolios consisting of 5 and 8 assets. Furthermore, we introduce noise based on a depolarizing channel to investigate the behavior of the algorithm in realistic environments. The results show that while XY Mixers exhibit superiority in noiseless settings, their advantage degrades in noisy environments, and the optimal choice of mixer depends on both the number of QAOA depths and the noise strength. Subjects: Quantum Physics (quant-ph) Cite as: arXiv:2602.21562 [quant-ph] (or arXiv:2602.21562v1 [quant-ph] for this version) https://doi.org/10.48550/arXiv.2602.21562 Focus to learn more arXiv-issued DOI via DataCite (pending registration) Submission history From: Shintaro Yamamura [view email] [v1] Wed, 25 Feb 2026 04:35:26 UTC (1,317 KB) Full-text links: Access Paper: View a PDF of the paper titled Performance Comparison of QAOA Mixers for Ternary Portfolio Optimization, by Shintaro Yamamura and 4 other authorsView PDFTeX Source view license Current browse context: quant-ph new | recent | 2026-02 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?) Links to Code Toggle Papers with Code (What is Papers with Code?) 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?)