What is a Financial Quantitative Analyst?

Quantitative analysis in finance uses mathematical and statistical analysis to help determine the value of a financial asset, such as a stock or option.

A financial quantitative analyst provides guidance to businesses and individuals making investment decisions. They analyze and evaluate investment opportunities and find profitable investments for their clients.

What does a Financial Quantitative Analyst do?

Financial quantitative analysts process a variety of data in order to develop trading algorithms and computer models. They rely purely on math to make investment decisions.

Two financial quantitative analysts sitting at a desk opposite of each other, looking at a chart, and evaluating investment opportunities.

These algorithms and computer models help 'quants' to find and analyze investment opportunities and to implement a trading strategy that will result in profits for their clients. Trading strategies include detailed information about expected risks and returns, as well as entry and exit points.

Financial quantitative analysts explain their recommendations to clients and provide a recommendation to buy, hold, or sell a security. They often have to make split-second trading decisions, paying attention to details when reviewing possible investments, as small facts may have large implications for the health of an investment.

Generally, the focus is directed towards trends affecting a specific industry, geographical region, or type of product. Financial quantitative analysts need to understand the language, culture, business environment, and political conditions in the country or region that they cover. They also need to understand how new regulations, policies, and political and economic trends may affect investments.

Financial quantitative analysts typically do the following:

  • Recommend individual investments and collections of investments, which are known as portfolios
  • Evaluate current and historical data
  • Study economic and business trends
  • Study a company's financial statements and analyze commodity prices, sales, costs, expenses, and tax rates
  • Determine a company's value by projecting the company's future earnings
  • Meet with company officials to gain better insight into the company's prospects and management
  • Prepare written reports
  • Meet with investors to explain recommendations

Are you suited to be a financial quantitative analyst?

Financial quantitative analysts have distinct personalities. They tend to be investigative individuals, which means they’re intellectual, introspective, and inquisitive. They are curious, methodical, rational, analytical, and logical. Some of them are also conventional, meaning they’re conscientious and conservative.

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What is the workplace of a Financial Quantitative Analyst like?

Financial quantitative analysts work primarily for security and commodity brokerages, banks and credit institutions, and insurance carriers. Others work throughout private industry and for the government.

Hours of work are typically full time. Overtime should be expected, as deadline pressure is quite common. Some travel may be necessary in order to meet up with potential investors.

Financial Quantitative Analysts are also known as:
Quantitative Analyst Quantative Research Analyst Quantitative Financial Analyst Financial Quant Analyst Quant