Quantitative Analysis (Finance)
Quantitative analysis is the use of mathematical and statistical methods ( financial mathematics ) in finance . The professionals in this field are quantitative analysts (or quant (financial jargon)). Quants tend to specialize in certain areas that may include structuring or pricing derivatives , risk management , algorithmic trading, and investment management . The profession is similar to industrial mathematics in other industries. The process usually consists of searching large databases for patterns such as: B. Correlations between liquid assets or price movement patterns (trend following or mean reversion). The resulting strategies can include high frequency trading .
Although the original quantitative analysts were " sell-side quants " from market maker firms involved in the pricing and risk management of derivatives, over time the meaning of the term has expanded to include those involved in almost Any application of math finance are involved, including " buy side ". Examples are statistical arbitrage , quantitative investment management, algorithmic trading and electronic market making .
Some of the larger asset managers that use quantitative analysis are Renaissance Technologies , Winton Group, DE Shaw & Co. , AQR Capital Management, and Two Sigma Investments.
Remarks
- ↑ Security check | LinkedIn. Accessed January 30, 2020 .
- ^ Actuary News, Actuarial Articles, Digital Magazine and Actuary Jobs - WikiActuary - Quantitative Analyst. Accessed January 30, 2020 .
- ^ Trading, Risk Management, and Quant Solutions. Accessed January 30, 2020 (English).
- ↑ Quants of the year: Leif Andersen, Michael Pykhtin and Alexander Sokol. December 8, 2017, accessed January 30, 2020 .
- ↑ Machine Learning in Finance: Theory and Applications. In: Markets Media. January 22, 2013, accessed January 30, 2020 (American English).