Quantitative Investment Basics

Quantitative investment, also known as quantitative finance, is a method of investing that uses mathematical models and statistical analysis to make investment decisions. It has become increasingly popular in recent years due to its ability to provide a systematic and disciplined approach to investing.

Key Concepts

Risk Management: One of the core principles of quantitative investment is to manage risk effectively. This involves using statistical models to measure and mitigate potential risks.
Factor Investing: Factor investing is a strategy that focuses on identifying and investing in factors that have historically led to outperformance in the market.
Machine Learning: Machine learning algorithms are used to analyze large datasets and identify patterns that can be used to make investment decisions.

Types of Quantitative Investment Strategies

Statistical Arbitrage: This strategy involves taking advantage of price discrepancies between related assets.
Market Neutral Strategies: These strategies aim to generate returns regardless of market conditions.
Global Macro Strategies: These strategies involve making predictions about the overall economic environment and investing accordingly.

Resources

For more information on quantitative investment, you can visit our Quantitative Investment Guide.