DEFINITION of 'Quantitative Analysis'
A business or financial analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically.
Quantitative analysis can be done for a number of reasons such as measurement, performance evaluation or valuation of a financial instrument. It can also be used to predict real world events such as changes in a share price.
INVESTOPEDIA EXPLAINS 'Quantitative Analysis'
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.
Although quantitative analysis is a powerful tool for evaluating investments, it rarely tells a complete story without the help of its opposite  qualitative analysis. In financial circles, quantitative analysts are affectionately referred to as "quants", "quant jockeys" or "rocket scientists."
VIDEO

AntiFragility
A postulated antithesis to fragility where highimpact events ... 
Speed
The rate at which the gamma of an option or warrant will change ... 
Douglass C. North
An American economist and winner of the 1993 Nobel Memorial Prize ... 
Quantitative Trading
Trading strategies based on quantitative analysis which rely ... 
Fundamental Analysis
A method of evaluating a security that entails attempting to ... 
Monte Carlo Simulation
A problem solving technique used to approximate the probability ...

How does my insurance company determine what premiums I have to pay for coverage?
Investors can use a few basic concepts from quantitative analysis, such as standard deviation and beta, to evaluate possible ... Read Full Answer >> 
Is it better to use fundamental analysis, technical analysis or quantitative analysis ...
The most common methods that investors use to analyze the benefits and risks associated with longterm investment in the ... Read Full Answer >> 
How do I take qualitative factors into consideration when using fundamental analysis?
Fundamental analysis is the method of analyzing companies based on factors that affect their intrinsic value. There are two ... Read Full Answer >> 
What debt to equity ratio is common for a bank?
The average debttoequity ratio for retail and commercial U.S. banks, as of January 2015, is approximately 2.2. For investment ... Read Full Answer >> 
What is the average profit margin for a company in the banking sector?
The average net profit margin for retail or commercial banks, as of January 2015, is approximately 18%. This compares favorably ... Read Full Answer >> 
What are the differences between absorption costing and variable costing?
Absorption costing includes all costs, including fixed costs, in figuring the cost of production, while variable costing ... Read Full Answer >>

Fundamental Analysis
What is Quantitative Analysis?
Quantitative analysis refers to the use of mathematical computations to analyze markets and investments. 
Fundamental Analysis
Ratio Analysis Tutorial
If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios. 
Economics
Portfolio Mismanagement: 7 Common Stock Errors
Don't lose your shirt over these seven simple  and preventable  investment follies. 
Professionals
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high  and well deserved  salary. 
Investing Basics
Getting To Know Stock Screeners
Finding good stocks can be like finding a needle in a haystack. But these invaluable tools can help. 
Fundamental Analysis
Quantitative Analysis Of Hedge Funds
Hedge fund analysis requires more than just the metrics used to analyze mutual funds. 
Active Trading
Economic Moats: A Successful Company's Best Defense
Find out why some companies thrive while others flounder. 
Markets
Introduction To Fundamental Analysis
Learn this easytounderstand technique of analyzing a company's financial statements and reports. 
Investing Basics
Explaining WriteDowns
A writedown is a reduction in the book value of an asset because it is overvalued compared to the market value. 
Investing
The Strong Dollar’s (Real) Toll On Tech Stocks
A large portion of U.S. technology companies’ sales occur overseas, given the strong international business and consumer demand from many U.S. tech firms.