What Does a Financial Quantitative Analyst Do?

Financial Quantitative Analysts Develop quantitative financial products used to inform individuals or financial institutions engaged in saving, lending, investing, borrowing, or managing risk. Investigate methods for financial analysis to create mathematical models used to develop improved analytical tools or advanced financial investment instruments.


Typically, Financial Quantitative Analysts perform these tasks every day:

    Apply mathematical or statistical techniques to address practical issues in finance, such as derivative valuation, securities trading, risk management, or financial market regulation.

    Maintain or modify all financial analytic models in use.

    Provide application or analytical support to researchers or traders on issues such as valuations or data.


Most days, Financial Quantitative Analysts perform these tasks:

    Devise or apply independent models or tools to help verify results of analytical systems.

    Confer with other financial engineers or analysts on trading strategies, market dynamics, or trading system performance to inform development of quantitative techniques.

    Interpret results of financial analysis procedures.

    Produce written summary reports of financial research results.

    Identify, track, or maintain metrics for trading system operations.


Other tasks that Financial Quantitative Analysts perform include:

    Research or develop analytical tools to address issues such as portfolio construction or optimization, performance measurement, attribution, profit and loss measurement, or pricing models.

    Collaborate with product development teams to research, model, validate, or implement quantitative structured solutions for new or expanded markets.

    Consult traders or other financial industry personnel to determine the need for new or improved analytical applications.

    Define or recommend model specifications or data collection methods.

    Develop core analytical capabilities or model libraries, using advanced statistical, quantitative, or econometric techniques.

    Research new financial products or analytics to determine their usefulness.

    Collaborate in the development or testing of new analytical software to ensure compliance with user requirements, specifications, or scope.

    Prepare requirements documentation for use by software developers.

    Develop tools to assess green technologies or green financial products, such as green hedge funds or social responsibility investment funds.

    Develop solutions to help clients hedge carbon exposure or risk.

    Develop methods of assessing or measuring corporate performance in terms of environmental, social, and governance (ESG) issues.

    Assess the potential impact of climate change on business financial issues, such as damage repairs, insurance costs, or potential disruptions of daily activities.

    Analyze pricing or risks of carbon trading products.

Other Questions about Financial Quantitative Analysts
QUESTION

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How Much Experience is Needed to Become a Financial Quantitative Analyst?

Extensive skill, knowledge, and experience are needed for these occupations. Many require more than five years of experience. For example, surgeons must complete four years of college and an additional five to seven years of specialized medical training to be able to do their job.

  • 65.22% said they needed a Master's Degree.

  • 13.04% said they needed a Bachelor's Degree.

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QUESTION

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What Skills Should a Financial Quantitative Analyst Have?

Mathematics

Using mathematics to solve problems.

Critical Thinking

Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.

Reading Comprehension

Understanding written sentences and paragraphs in work related documents.

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What Tools and Technologies Are Financial Quantitative Analysts Using to Do Their Job?
Tools

Photocopying equipment

Personal computers

Multi-line telephone systems

Technologies

Apache Hive

IBM SPSS Statistics

JavaScript

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QUESTION

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What Subjects Should I Study to Become a Financial Quantitative Analyst?

Mathematics

Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.

Computers and Electronics

Knowledge of circuit boards, processors, chips, electronic equipment, and computer hardware and software, including applications and programming.

Economics and Accounting

Knowledge of economic and accounting principles and practices, the financial markets, banking and the analysis and reporting of financial data.

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