Why Should You Become a Quantitative Analyst?
While the finance sector tries to respond to the needs of the developing and changing world economy, it also faces high risks. In order to create a sustainable business environment in such an environment with high risk and many variable parameters, banks, mutual funds and companies want to recruit professionals who are specialized in this field to identify investment opportunities and manage risk. Quantitative analysts have exactly what firms in the financial sector are looking for.
What is a Quantitative Analyst?
Quantitative analysts are people who produce mathematical and statistical solutions to problems that require financial and risk management. Firms make financial and business decisions by using complex models on investment and pricing issues. Quantitative analysts also update these models, develop them and adapt and apply them according to the field of use.
To work as a quantitative analyst, you must have the following competencies;
Math and statistical computing ability
Data mining and data analysis capability
Comprehensive financial information
Thanks to the competencies and skills we mentioned, you can process the raw data you obtain from the financial world and turn them into business strategies
If you say that I have the skills specified in the job description or you can acquire these skills, it is possible to become a quantitative analyst. Now we will explain why you should choose this career.
The demand for quantitative analysts has increased
As in other fields, developing technology has brought development and innovative approaches in the finance sector. As securities have become more and more complicated in recent years, people who can understand and interpret the mathematical and statistical models behind financial data in order to make profit and minimize risks while applying investment strategies are popular in the industry. In addition, the growth of hedge funds and auto trading has also increased the industry's demand for quantitative analysts.
Demand will continue to increase
Before the 2008 crisis, the value of risk analysis in the financial sector was not fully understood. With the crisis, the shortcomings of financial systems emerged. For this reason, policy makers implemented fiscal reforms to reduce risks and prevent future crises. Today, compared to the pre-crisis period, institutions operating in the financial sector require detailed risk transparency reporting. Likewise, investors need better risk analysis to protect their investments. This increase in the risk management industry will grow exponentially with each passing day. Therefore, there are important opportunities for people who want to pursue a career in this field.
Quantitative analyst jobs are highly stimulating
Working as a knatitative analyst actually means dealing with many stimuli. Your most important task in the environment in which you will work is to tackle complex problems under pressure. For this reason, being a quantitative analyst is a profession that requires research, the development and application of mathematical models, data analysis, interpretation of analyzes and transforming them into rational business strategies, and general financial knowledge. As a quantitative analyst, even if you are under pressure, you must be able to improve. There is a competitive work environment and there is no such thing as working hours. But unlike most jobs, you pay off for developing yourself in this field because it is a profession that relies on knowledge rather than networking and politics.
You will be financially rewarded with this career
When you become a quantitative analyst, you gain both intellectually and financially. Generally, people working in the financial sector have high salaries. Because working in this field requires many skills as well as being difficult. Quantitative analysts, especially those working for a hedge fund, receive a fairly high salary due to the skills and competencies required by the position.
Quantitative analyst jobs are mostly found in major financial centers such as New York, Hong Kong, London, and Paris. For example, the average wage for a quantitative analyst is around £ 60,000 a year in London (UK) and around $ 100,000 in New York (USA).