What is Quantitative Finance

Quantitative Finance is about more than analyzing stock portfolios; it is at the heart of all modern financial strategies and operations.

The discipline spans the management of pension funds and insurance companies to the control of operational risks for manufacturing and consumer products companies and how to model the behavior of financial markets.

As the financial markets transform, the applications of Quantitative Finance include:

  • The use of mathematical models to support more accurate asset pricing, stock selection, asset allocation, and investment portfolio analysis
  • Computerized trading replacing the traditional “trading pit”
  • The quantification of statistical parameters, such as volatility and correlation of returns, leading to new ways of assessing risk and designing effective hedging strategies