| Topic : Investment options In India |
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Investment Hub |
BANKING & FINANCIAL INDUSTRY |
Project Finance /Financial Models |
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Activity:
Question posted: 08 14 2009 11:07:49 +0000,
5 answers, 348 views, last activity
07 06 2010 20:18:08 +0000
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Quantitative analysis employs complex mathematical and statistical models for asset selection and portfolio management. Quant funds are based on quantitative analysis.
What are the important advantages and limitations of quantitative analysis and how complementing it is, fundamental and technical analysis?
Quantitative analysts or Quants calculate the probability of a market rising. Technical analysis is based on patterns of the index. Finanacial analysis is based on forecasts of sales, growth rates, managerial efficiency, strategies of future and ratios.
Quantitative analysis applies mathematics, among others stochastic calculus, to finance. In broad terms, quantitative analysis is simply a way of measuring things. Examples of quantitative analysis include everything from simple financial ratios such as earnings per share, to something as complicated as discounted cash flow, or option pricing.
In today's environment, data is not fully leveraged as a business asset because of trim analytical staffs and information overload. Quantitative Analysis can assist by applying advanced statistical analysis techniques to help getting more from data, as well as external data sources. It helps in finding that even a modest investment in analysis can yield great returns in increased revenues, improved profits, and better understanding of the decision at hand. For every project we take the time to fully analyze all the appropriate data, and deliver profitable decision-making tools and knowledge.
Analysis based on law of conservation of "money". Once a set of investors enter the market, they exit with a deffinite profit margin. On the other hand, if the market falls, a lot of STOP-LOSSES get triggered for the long position holders. Similarly, when the market rises, a lot of STOP-LOSSES get triggered for the sell position holders. On this basis, technical analysis like quantitative analysis is derived.
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