quantitative analysis qa refers to methods used to understand the behavior of financial markets and make more informed investment or trading decisions it involves the use of mathematical and statistical techniques to analyze financial data 1 for instance by examining past stock prices earnings reports and other information quantitative analysts often called quants aim to forecast where the market is headed 2
unlike fundamental analysis that might focus on a company s management team or industry conditions quantitative analysis relies chiefly on crunching numbers and complex computations to derive actionable insights quantitative analysis can be a powerful tool especially in modern markets where data is abundant and computational tools are advanced enabling a more precise examination of the financial landscape however many also believe that the raw numbers produced by quantitative analysis should be combined with the more in depth understanding and nuance afforded by qualitative analysis 