Find out everything you need to know about the job of Quant or Quantitative Analyst: role, responsibilities, skills, salary…
In the field of finance, there is no longer any room for chance today. Companies in this sector are now struggling to survive. quants or quantitative analysts Professionals capable of developing complex mathematical models to minimize risk, increase security and make investment and pricing decisions.
If quants are so sought after, it is also because they are rare. And with good reason: this is a profession requiring a high level of skill. expertise in mathematics, finance and computer science. As a result, companies do not hesitate to offer quants very attractive salaries.
What is the role of a Quant?
The role of a quantitative analyst can vary greatly from one industry to another and even from one company to another. In general, his or her work consists of applying scientific methods to the field of financeand discover new ways to visualize and analyze data.
In detail, a Quant must analyze market trends to design quantitative models. It must then develop and implement these complex models as well as software and analytical tools.
On a daily basis, the Quant performs statistical analyses on risks or pricingand programming tasks such as pattern recognition or Machine Learning.
He must also testing new analytical models, products and programs and detail model specifications and data collection methods. Its role is also to maintain and modify the run-of-the-river financial models.
This expert will also have to use or create tools to verify his results. He collaborates with teams of mathematicians, computer engineers and physicists to develop optimal strategies.
The analyst also meets with professionals from the finance industry around trading strategies, market dynamics or performance. In addition, it presents and interprets the results of its data analysis to managers and clients.
Many Quants make the right choice to specialize in a particular field. Examples include statistical arbitrage, degressive pricing, quantitative investment management or algorithmic trading.
The Quants’ business sectors
The Quants work mainly for investment banks and hedge funds. They are also sometimes found in commercial banks, insurance companies or consulting firms. They are also used by financial software publishers.
The Quants also work with traders. They can provide them with trading or pricing tools, or develop new strategies. They are very much in demand in the trading field, and allow investors to better understand the markets and measure risks.
What are the competences of the Quant?
The Quants are first and foremost financial experts. They need to know modeling the most complex financial securities with precisionand therefore have a high level of expertise in mathematics and computer science.
Quantitative analysts must master mathematical concepts such as calculus, linear algebra, differential equations, probability and statistics. In computer science, they must be able to code in C++, MATLAB, SAS or S-PLUS.
To create trading tools, you need to be proficient in Java, .NET or VBA and Excel. He or she must also know how to manage databases and handle the main Big Data tools.
Most Quants have a diploma at master’s level or higher in mathematics, economics, finance or statistics. A master’s degree in financial engineering is also a sesame.
Certifications in the field of finance, such as Chartered Financial Analyst (CFA), do not really add value to a Quant’s CV. However, they do, Certificate in Quantitative Finance (CQF) is an exception and can be obtained remotely through a six-month intensive program.
In addition to these technical skills, the Quant must have a talent for solving problems through data analysis. He must also be able to work under pressureThe Board will be required to make critical decisions in stressful situations.
This expert is also an independent person, able to work without a supervisor on challenges that are a priori insurmountable. He is also capable of working long hours on a computer without losing his concentration, and communicative talent to share its ideas with decision-makers and other company employees.
Why are the Quants so sought after?
Quants are in high demand for several reasons. First and foremost, the market for automated trading systems is experiencing rapid growth and these experts are needed to develop and use them.
Besides.., financial security is becoming increasingly complex. and the Quants can handle it. They also respond to a need for strategic innovation in the field of investment, and allow traders, accountants and other salespeople to access risk and pricing models.
In which country to work as a Quant?
Quantitative analysts are sought after in all countries, but almost only in financial centres.. In the United States, positions are concentrated in New York and Chicago or in areas where hedge funds are located such as Boston or Stamford.
In Europe is in London that there are vacancies. In Asia / Oceania, most of the Quants are located in Hong Kong, Singapore, Tokyo and Sydney.
What’s a Quant’s salary?
Like many jobs in the finance sector, Quant benefits from a very high salary. In the United States, a quantitative analyst can earn 250,000 per year…even $500,000 a year if you count the bonuses.
The organizations offering the highest compensation are hedge funds and other trading companies. The salary also depends on the company’s income.
A beginner will rather earn between $125,000 and $150,000, but will be able to progress quickly in terms of salary and responsibilities. In France, according to Glassdoor, the average salary of a Quant is a little over 50,000€ per year.