This text is for anyone who would like to become a Quant.
|Quantitative analysis is defined as the mathematical and statistical techniques of studying conduct and predicting results that's investors and management use when making decisions. This is done through finance research and analytics, this kind of analysis evaluates where the money is going to be invested. Quantitative analysis is also used to gauge changes in economic value. Frequently used type of quantitative analysis is feasibility studies, break-even analysis, benefit-cost analysis, and statistical analysis. Below is an example of a quantitative analysis at work.
Brian is a manager at a major printing company and he wants to make changes of outlay to the company's most profitable magazine. He is convinced that this change will broaden the traffic to the magazine, therefore increasing the company's profits. It will cost $80,000 to change the outlay. By using cost-benefit analysis, Brian estimates the new magazine will increase earnings roughly by $225,000, which makes a profit of $145,000. Assuming $15,000 will be used for commercials, net profit will be $130,000, which makes the firm 63% on their investment.
Below are the top 10 books that would be useful to your journey of becoming a Quant. They are incredible collections of books with vast knowledge and information.
In the first place is An Introduction to Quantitative Finance written by an expert called Stephen Blyth, a managing director at Harvard University and also a professor of the practice of statistics. The book is short and written to the point, so purchasing this book would be a good place to start as it is simple to understand. In this book, Stephen Blyth has exposed theories and problems of quantitative finance to the readers therefore readers can apply these theories in real life.
The second book to read is Quantitative Trading with R: which is authored by Harry Georgakopoulos. Harry has in this book shows to his readers how to make quantitative strategies by use of the software. He is a specialist in quantitative finance. Harry has used a conversational style of writing, which is one way of winning the attention of his readers and fellow experts. Quantitative Trading with R: gives readers full information on quantitative finance and can be of huge help in the development of business strategies. It has references, tutorials, and suggestions, it has many benefits for Quant beginners.
Then there is this book that goes by the name Quantitative Momentum: A Practitioner's Guide to Building a Momentum-Based Stock Selection System written by Wesley Gray and Jack Vogel. This quantitative finance book how a few systematic financial plans should be like most of the plans fail. He helps his readers to come up with their own plans from the beginning. If you wish to understand financial plans and how to execute them successfully, then this one of the best books you should have on your shelve.
Fourth on this list is Quantitative Finance for Dummies, it was written by Steve Bell DPhil. Quantitative analysis is a tough discipline, it has driven people crazy. That is where this book comes in, it has explained finance in totally simple straightforward, and simple language. It has helped readers to apply mathematics and invest in their plans. The book covers important models and methods, it assists the readers to better comprehend quantitative analysis, as examples and exercises are included in this book. This book contains useful quantitative analysis methods that must be learned and known by anyone who wants to become a Quant.
Finance: A Quantitative Introduction book written by Nico van der Wijst is another quantitative analysis book that contains a guide to current finance. Nico gives understandable and complete information on the subject. Modern finance is given to the readers by giving the full theory of the subject to learners. The book has clear content making it easy to understand finance as it is not an easy topic to work with.
In this list, we have another book called Quantitative Methods for Business. It's authored by more than one writer. They are David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Camm, and James Cochran. This book shows readers how you can use different and multiple quantitative methods. It includes trends used in markets and industries, and writers have given life experiences to better explain this to learners. The authors give step by step implementation of ideas and techniques of math.
Finally, on this listing author Terry Watsham and Keith Parramore has written a book called Quantitative Methods for Finance. The book's focus is on people who practice quantitative finance methods, and it has useful lessons for people who want to become Quants and have less knowledge of analyzing statistics. Other books you can read are Quantitative Finance: A Simulation-Based Introduction Using Excel written by Matt Davison, Quantitative Risk Management: Concepts, Techniques, and Tools authored by J. McNeil, Roger Frey, and Paul Embrechts and last book recommended is Extreme Financial Risks and Asset Allocation written by Olivier Le Courtois and Christian Walter