Quantitative Analyst
Job Description:Quantitative analysts solve financial problems by creating algorithms or other statistical models.
Job Category:What you will do:
Quantitative analysts use their mathematical or statistical knowledge to help a business succeed. Usually, this involves solving problems in finance or banking – for example, to calculate the risk of making a financial decision or identify profitable investment opportunities.
You’ll normally work in a bank, hedge fund, insurance company or private equity firm.
Your day-to-day duties could include:
- creating, developing and implementing algorithms and statistical models
- evaluating existing models
- meeting with different teams to agree on new approaches and ensure (teamwork skills)
- consistency across the company
- researching pricing models across the market
- documenting and keeping careful records of processes
- presenting your data to other people in your company, clients or managers
Skills:
You’ll need:
- maths knowledge
- knowledge of economics and accounting
- knowledge of different research methods
- knowledge of coding
- to be able to use a computer and the main software packages competently
As well as:
- careful attention to detail
- the ability to work independently
- calmness under pressure
- analytical thinking skills
- ambition and a desire to succeed (ambition/drive)
- persistence and determination
- the ability to use your initiative
- the ability to use your judgement and make decisions (leadership skills)
- thinking and reasoning skills
Entry Requirements:
To become a Quantitative Analyst, you’ll need a strong educational background in mathematics, statistics, and related subjects. While there are no specific subject requirements for this role, focusing on certain subjects can help build a solid foundation for future studies in quantitative finance and data analysis. Here are some subjects that can be beneficial:
- Mathematics (Higher Level): Strong math skills are essential for quantitative analysis. Consider taking advanced mathematics courses if available.
- Statistics: Statistics can provide an introductory understanding of statistical concepts, which are fundamental for quantitative analysis.
- Physics: Physics can help you develop problem-solving skills and analytical thinking, which are valuable in quantitative analysis.
- Computer Science: Familiarity with computer programming and data analysis tools is crucial. Basic coding skills can be developed during your studies.
- Economics: Studying economics can provide insights into financial markets and economic theory, which are relevant to quantitative finance.
- Business Studies: Understanding business concepts can be valuable, especially if you plan to work in the financial industry.
Post School
Most quantitative analysts have a Master’s degree or PhD in a relevant subject, such as mathematics, computer science or physics.
If your degree did not include practice of coding or programming, it is important to gain knowledge on this too. Applicants with a Master’s or PhD in a financial subject may be considered if they can show they have this.
Working Hours and Environment:
Quantitative analysts usually work full-time. This might be around 40 hours per week if working on ‘live’ problems, but if working on longer projects, hours can be more demanding as deadlines approach.
You may have the option to work remotely, in the office, or flexibly.
Career Path & Progression:
By gaining experience in one financial institution, such as a bank or hedge fund, you may then choose to move into another sector, like insurance. With enough experience – usually at least a few years – you could also progress to a ‘lead quant’ role, managing a team of analysts.