What does a Quantitative Analyst do?
Quantitative analysts use quantitative methods that help companies to make sound business and financial decisions. They work for various financial institutions including investment banks, hedge funds, asset managers, and private equity firms. They are hired to identify profitable investment opportunities while simultaneously managing risk. Quantitative analysts are the creators of computer algorithms that assist with 21st century markets through electronic trading from numerical algorithms.
Quantitative analysts program algorithms that are speedy and efficient enough to help locate the finest trades for the best price ahead of competitors. Outside of banking, quantitative analysts might work in the insurance field to develop pricing models and develop risk evaluation strategies. Quantitative analysts need fluency in numbers and a master's degree in quantitative finance, financial engineering, or a related quantitative field including physics, statistics, or math. Senior-level positions may require a Ph.D.
- Guide and shape the analytics and insights leveraging an array of forecasting modeling approaches.
- Responsible for the accurate and timely forecasting deliverables for designated brands (in-line and new indications).
- Perform direct and indirect validation of calibration in the models.
- Mentor junior model validators within the team on best practices.
- Assist with ad hoc model risk analysis as needed.
- Proactively provide analytical insights (as opposed to 'business data dumps') to better predict performance and inform brand strategy and tactics.
- Provide technical advice and direction to support the design and development of secure architectures.
- Evaluation of internal security architecture may include design assessment, risk assessment, and threat modeling.
- Keep inventory of forecast models and bridge changes from scenario to scenario.
- Conduct qualitative review of the model. examine documentation for detailed description of the theory, references to the base model, product description, mathematical and technical parameters.
- Develop and code challenger models for benchmarking and for validation of high-risk model.
- Review model implementation into the production code.
- Draft a validation report with executive summary with approval/disapproval, restrictions on model usage, summary of findings, and remediation plans.
- Oversee critical projects on high impact models, plan and organize project scope, liaison with stakeholders, and evangelize on best practices.
- Interact with cross-functional teams to model current operations processes and evaluate potential solutions.
- Verify the correct model implementation through review and understanding of version control software.
- Work closely with other teams and critical stakeholders to shape and prioritize the modeling and analytical work efforts and plans.
- Investigate purported intrusions and breaches, and oversee root cause analysis.
- Build and maintain easy to use, secure, open source encryption tools and libraries used by internal and external customers.
- Develop and collaborate on user guide, developer guide, API references, tutorials, code examples, blog posts, and presentations.
- Bachelor's or Graduate's Degree in computer science or engineering or equivalent experience.
- Experience with Microsoft Excel.
- Leadership skills and a solid work ethic.
- Proficient in big data and relational databases, algorithm design and machine learning.
- Proficient in SQL, CCAR, C, CMA, and MATLAB software and systems.
- Fluency in statistics and datasets.
- Can utilize natural language processing skills.
- Experience with Python, R Language, and Basel III.
Quantitative Analyst Salaries
Average Base Pay
Quantitative Analyst Career Path
Learn how to become a Quantitative Analyst, what skills and education you need to succeed, and what level of pay to expect at each step on your career path.
Years of Experience Distribution
Quantitative Analyst Insights
“I don't have much to say much the people here are frank and good to work with”
Open Futures“Top level management is easily accessible to resolve any real time issues which is hurting the productivity.”
Token Metrics Media“2. The compensation is only 20 per hour while it was 40 per hour before.”
Citi“Bank has many departments so there's a lot of opportunities to develop your career.”
Citi“Good good good good exposure!”
QuantInsti Quantitative Learning“Stum boss but good not leader”
Santander“Good helpful supportive challenging enjoyable”
Citi“You'll basically be at the same base salary for years because salaries only increase by 1”
Frequently asked questions about the role and responsibilities of a Quantitative Analyst
- Trader
- Equity Trader
- Quantitative Developer
- Quantitative Researcher