Quantitative Analysis
What is Quantitative Analysis?
Quantitative Analysis is a methodology used in accounting and finance to assess financial instruments, investments, or transactions by applying mathematical and statistical techniques. This approach helps in making informed financial decisions through numerical data assessment and subsequent modeling.
Short Description: A method of evaluating financial data using mathematical and statistical modeling, measurement, and research.
- Data-Driven Decisions: Utilizes large datasets to identify patterns and make predictions.
- Statistical Tools: Includes techniques such as regression analysis, probability theory, and quantitative modeling.
- Applications: Used extensively in fields such as trading strategies, financial forecasting, and risk management.
Quantitative Analysis is pivotal for businesses that rely heavily on data to drive strategies. It facilitates objective decision-making by focusing on measurable and numerical evidence.