Quantitative Analyst Jobs
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Quantitative analysts are employed to develop mathematical models to assist traders of securities. Thus, knowledge of statistical and mathematical methods is very crucial for quantitative analyst jobs. A quantitative analyst may also facilitate the designing of new securities. In the investment industry, quantitative analysts are in demand for risk management and derivative pricing.
The salary structure for quantitative analysts may differ on the basis of expertise and the industry involved. The job of a quantitative analyst is sometimes compared to rocket science.[br]
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Quantitative Analyst Jobs: Educational Background
Quantitative analyst jobs require one to have a PhD degree in mathematics or physics. People with a strong engineering background are sure to stand apart. Employers also consider computer programming skills while hiring a quantitative analyst.
Owing to the increase in the demand for quantitative analysts, a number of new PhD programs have been introduced. Some of these are financial engineering, computational finance, financial reinsurance and mathematical finance. London’s Cass Business School and Mellon’s Tepper School of Business offer several Master’s courses that one can check.
Quantitative Analyst Jobs: Front Office Position
Quantitative analysts are widely employed by banks to facilitate sales functions and trading. This involves developing financial models for the management of stocks and bonds. These models are then used to handle market prices by implementing them as software. Quantitative analysts make use of alpha generation platforms to build these models.
Quantitative Analyst Jobs: Types
Quantitative analysts can be divided into two categories, those who work on statistical models and others who deal primarily with mathematical models. Statistically oriented quantitative analysts are responsible for building models that are used to identify stocks, in terms of price. They rely more on econometrics and statistics then object-oriented programming and numerical techniques.
On the other hand, the core job of mathematically-oriented quantitative analysts involves building model for derivative products to facilitate their pricing, risk-management and hedging. They rely on numerical analysis for the creation of such models.[br]
Quantitative Analyst Jobs: Becoming a Quant
There is fierce competition for quantitative analyst jobs. Candidates with a PhD degree from top-tier schools gain an edge over others. The interview questions for the position of a quantitative analyst are fairly difficult. Candidates may be questioned about probability theory, stochastic calculus or linear algebra. Experience as an academician would be an added advantage.
