Many people, when they hear the term quantitative investment research, have no idea what it means. Some assume it is a form of investing with a very technical bent toward stocks or bonds that have long been in the hands of a select few. This type of investment has become quite popular over the last decade or so, with investors looking for better ways to diversify their portfolios and increase their total return on investments. This article will discuss how quantitative investment research can be used to help investors in their quest to find the best stocks, bonds, and real estate properties.
The first thing that a quantitative research analyst role applicant needs is a strong interest in finance and investing. Strong mathematical skills and programming skills are required since a trader will have to make decisions in buying and selling various financial instruments. In addition, the trader will also have to make an analysis of different aspects of trading such as market timing and strategy. It would be ideal if the applicant has a strong interest in finance and accounting to enhance their chances of success.
The applicant must be enthusiastic about applying for the quantitative investment research position since the job requires analytical skills. The applicant should also be willing to do research and study without supervision, which will help them to develop their own analytical skills. Quantitative investors should also have the capacity to do data analysis and research from multiple resources.
A bachelor’s degree in finance or accountancy is necessary to become a quantitative researcher. Candidates with a master’s degree or higher in a relevant field will have an increased probability of obtaining employment opportunities, according to quantitative investment research firm Technorati. The top fields for these positions include financial engineering, financial decision making, quantitative investment management, statistics, and quantitative trading. Most quantitative investment research firms have their own investment bank, which allows them to create a bond-buying program and market it on a secondary stock exchange such as the New York Stock Exchange. When choosing jobs, it is always important to ensure that you are interested in quantitative investment research and that you have a background in mathematics, computer science, and statistics, as well as the ability to work independently and creatively.
Quantitative investment research is not new, but it has only recently started to gain popularity and staying steady due to the explosive growth of quantitative trading software and platforms. These software programs are designed to identify profitable trends and patterns in the marketplace so that savvy investors can profit from them. They work by scanning the market for a set of indicators or oscillators, then making a comparison to their databases of past investments. Once it identifies what it deems as being a high probability trading opportunity, it notifies you so that you can trade accordingly. With all this happening at once, it is no wonder that they are so profitable, and have been for years now.
But do not worry if you don’t know much about the topic. Most brokers will be more than willing to show you the ropes and fill you in on the finer points of portfolio construction and risk management. Point 72 also discusses the need for a diversified portfolio, and how diversification can increase safety and flexibility. Again, this book is not for the person just getting started in quantitative investment research but for those who have been doing it for years and would like to have more up to speed on these latest techniques. A quick perusal through the appendices to this text will help out a lot of those just entering quantitative asset research.
While these are not all of the important chapters, they cover some of the most important ones. In fact, for a better understanding of the book and its chapters, it is recommended that one read the whole book. Of course, since there are so many white papers and other appendices, it may not serve as a complete guide. Nevertheless, the knowledge gained from the book will be very helpful in attaining the best results in building your personal wealth portfolio.