If you live in the financial world, you know you can’t go a day without a considerable amount of risk. It’s risky business to invest your money, either for yourself or other peoples’ money. In order to survive and navigate the complex and changing financial environment, institutions like investment banks, private equity firms and hedge funds are always seeking pros that can identify profitable opportunities and manage risk. A quantitative analyst is one of those professionals.
What is a quantitative analyst?
A quantitative analyst can sometimes be referred to as a quant. A quant is a specialist who applies mathematical and statistical methods to financial and risk management problems. They develop and implement complex models used by firms to make financial and business decisions. These decisions include investments, pricing, and risk management.
So what skills do employers desire for quantitative analysts? You will need strong mathematical and statistical skills. You will need to have a firm grasp on data mining and data analysis. In order to make financial decisions, you will have to have a great understanding of the markets and different financial landscapes. Programming skills are usually a plus when you are applying for a quantitative analyst job. Using all these skills to the best of your ability will allow you to transform data into sound business strategies.
So why should you become a quantitative analyst?
Over the past few years, securities have become more and more complex. With the growth in complexity, comes the growth of specialists. The financial industry requires specialists who are able to understand the mathematical models behind pricings to produce profits in conjunction with reducing risk. Hedge funds and the growth of automated trading systems have also allowed the demand for quants to continue to increase. The 2008 crisis created risk transparency and better risk infrastructure to help protect investments. The risk management industry has continued to grow with the increase in regulatory reporting and standards. All these factors have allowed these specialists to become a valuable commodity in the industry.
You Won’t Be Bored:
A quantitative analyst’s job will never be boring. It is your responsibility to solve complex problems while under pressure – sometimes extreme pressure. Your day to day responsibilities include research, development and implementation of mathematical models, data analysis, general financial knowledge, and other responsibilities that form a full day’s work. Quants usually operate in an environment with little supervision – so it’s up to you to get your work done. This role is very demanding and may require long hours. Your results will speak for themselves. It’s one of the few jobs out there that reward you based on your track record, and not who you know.
Quants usually have a nice salary to go with their workload. Due to the challenging nature of the job, they are usually paid pretty well, especially in financial industry centers like New York. Depending on the type of company you work for, you could do pretty well for yourself.
So what are you waiting for? Go out there and find your perfect quantitative analyst job. You won’t regret it!