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Quantitative analysis (finance)
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<p>Quantitative analysis is the use of <a href="/facts/Mathematical_finance/P9otEltQ">mathematical</a> and <a href="/facts/Statistical_methods/DNPsKGYU">statistical methods</a> in <a href="/facts/Finance/fLh1GgN8">finance</a> and <a href="/facts/Investment_management/DqdgDv2m">investment management</a>. Those working in the field are quantitative analysts (quants). Quants tend to specialize in specific areas which may include <a href="/facts/Derivative_(finance)/jx4CbakW">derivative</a> structuring or pricing, <a href="/facts/Risk_management/xGhxtxdp">risk management</a>, <a href="/facts/Investment_management/DqdgDv2m">investment management</a> and other related finance occupations. The occupation is similar to those in <a href="/facts/Industrial_mathematics/qyqklXXm">industrial mathematics</a> in other industries. The process usually consists of searching vast databases for patterns, such as correlations among liquid assets or price-movement patterns (<a href="/facts/Trend_following/o1YdJJza">trend following</a> or <a href="/facts/Mean_reversion_(finance)/333tMQdo">reversion</a>). </p><p>Although the original quantitative analysts were "<a href="/facts/Sell_side/yW3rBwtF">sell side</a> quants" from <a href="/facts/Market_maker/7v05Fsa3">market maker</a> firms, concerned with derivatives pricing and risk management, the meaning of the term has expanded over time to include those individuals involved in almost any application of mathematical finance, including the <a href="/facts/Buy_side/EWRbCmtR">buy side</a>. Applied quantitative analysis is commonly associated with quantitative investment management which includes a variety of methods such as <a href="/facts/Statistical_arbitrage/PRxc5L1s">statistical arbitrage</a>, <a href="/facts/Algorithmic_trading/GagwN2Bs">algorithmic trading</a> and <a href="/facts/Electronic_trading/UtfA0MLm">electronic trading</a>. </p><p>Some of the larger investment managers using quantitative analysis include <a href="/facts/Renaissance_Technologies/7eoJmxFv">Renaissance Technologies</a>, <a href="/facts/D._E._Shaw_%2526_Co./Yx8TEz7d">D. E. Shaw & Co.</a>, and <a href="/facts/AQR_Capital_Management/IKhh1qh3">AQR Capital Management</a>. </p>