Quantum-Assisted Optimal Rebalancing with Uncorrelated Asset Selection for Algorithmic Trading Walk-Forward QUBO Scheduling via QAOA
We present a hybrid classical-quantum framework for portfolio construction and rebalancing. Asset selection is performed using Ledoit-Wolf shrinkage covariance estimation combined with hierarchical correlation clustering to extract n = 10 decorrelated stocks from the S&P 500 universe without survivorship bias. Portfolio weights are optimised via an entropy-regularised Genetic Algorithm (GA) accelerated on GPU, alongside closed-form minimum-variance and equal-weight benchmarks. Our primary contribution is the formulation of the portfolio rebalancing schedule as a Quadratic Unconstrained Binary Optimisation (QUBO) problem. The resulting combinatorial optimisation task is solved using the Qu...
| Authors | Abraham Itzhak Weinberg |
|---|---|
| Primary category | q-fin.PM |
| Published | 4 March 2026 |
| Last updated at source | 4 March 2026 |
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