Financial Quantitative Analysts
Overview
SaveJob Zone Five: Extensive Preparation Needed
Experience
Extensive skill, knowledge, and experience are needed for these occupations. Many require more than five years of experience. For example, surgeons must complete four years of college and an additional five to seven years of specialized medical training to be able to do their job.
Education
Most of these occupations require graduate school. For example, they may require a master's degree, and some require a Ph.D., M.D., or J.D. (law degree).
Job Training
Employees may need some on-the-job training, but most of these occupations assume that the person will already have the required skills, knowledge, work-related experience, and/or training.
Examples
These occupations often involve coordinating, training, supervising, or managing the activities of others to accomplish goals. Very advanced communication and organizational skills are required. Examples include pharmacists, lawyers, astronomers, biologists, clergy, physician assistants, and veterinarians.
Develop quantitative techniques to inform securities investing, equities investing, pricing, or valuation of financial instruments. Develop mathematical or statistical models for risk management, asset optimization, pricing, or relative value analysis.
Demand
Core Tasks
- Apply mathematical or statistical techniques to address practical issues in finance, such as derivative valuation, securities trading, risk management, or financial market regulation.
- Research or develop analytical tools to address issues such as portfolio construction or optimization, performance measurement, attribution, profit and loss measurement, or pricing models.
- Interpret results of financial analysis procedures.
- Develop core analytical capabilities or model libraries, using advanced statistical, quantitative, or econometric techniques.
- Define or recommend model specifications or data collection methods.
- Maintain or modify all financial analytic models in use.
- Produce written summary reports of financial research results.
- Provide application or analytical support to researchers or traders on issues such as valuations or data.
- Devise or apply independent models or tools to help verify results of analytical systems.
- Collaborate in the development or testing of new analytical software to ensure compliance with user requirements, specifications, or scope.
- Confer with other financial engineers or analysts on trading strategies, market dynamics, or trading system performance to inform development of quantitative techniques.
- Consult traders or other financial industry personnel to determine the need for new or improved analytical applications.
- Research new financial products or analytics to determine their usefulness.
- Identify, track, or maintain metrics for trading system operations.
- Collaborate with product development teams to research, model, validate, or implement quantitative structured solutions for new or expanded markets.
- Develop methods of assessing or measuring corporate performance in terms of environmental, social, and governance (ESG) issues.
- Prepare requirements documentation for use by software developers.
- Develop solutions to help clients hedge carbon exposure or risk.
- Develop tools to assess green technologies or green financial products, such as green hedge funds or social responsibility investment funds.
- Assess the potential impact of climate change on business financial issues, such as damage repairs, insurance costs, or potential disruptions of daily activities.
- Analyze pricing or risks of carbon trading products.
Technology Skills
Technology
Example
Hot Technology
Tools Used
Tool
Example
Top 10 Knowledge Required
Mathematics
93%
Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.
Economics and Accounting
84%
Knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.
Computers and Electronics
74%
Knowledge of circuit boards, processors, chips, electronic equipment, and computer hardware and software, including applications and programming.
English Language
61%
Knowledge of the structure and content of the English language including the meaning and spelling of words, and rules of composition and grammar.
Engineering and Technology
54%
Knowledge of the practical application of engineering science and technology. This includes applying principles, techniques, procedures, and equipment to the design and production of various goods and services.
Administration and Management
42%
Knowledge of business and management principles involved in strategic planning, resource allocation, human resources modeling, leadership technique, production methods, and coordination of people and resources.
Design
42%
Knowledge of design techniques, tools, and principles involved in production of precision technical plans, blueprints, drawings, and models.
Customer and Personal Service
41%
Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.
Education and Training
41%
Knowledge of principles and methods for curriculum and training design, teaching and instruction for individuals and groups, and the measurement of training effects.
Psychology
41%
Knowledge of human behavior and performance; individual differences in ability, personality, and interests; learning and motivation; psychological research methods; and the assessment and treatment of behavioral and affective disorders.
Top 10 Skills
Mathematics
88%
Using mathematics to solve problems.
Critical Thinking
83%
Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.
Reading Comprehension
80%
Understanding written sentences and paragraphs in work-related documents.
Complex Problem Solving
78%
Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.
Active Learning
75%
Understanding the implications of new information for both current and future problem-solving and decision-making.
Active Listening
75%
Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.
Judgment and Decision Making
75%
Considering the relative costs and benefits of potential actions to choose the most appropriate one.
Speaking
75%
Talking to others to convey information effectively.
Writing
70%
Communicating effectively in writing as appropriate for the needs of the audience.
Systems Analysis
65%
Determining how a system should work and how changes in conditions, operations, and the environment will affect outcomes.
Top 10 Abilities
Mathematical Reasoning
88%
The ability to choose the right mathematical methods or formulas to solve a problem.
Written Comprehension
80%
The ability to read and understand information and ideas presented in writing.
Deductive Reasoning
78%
The ability to apply general rules to specific problems to produce answers that make sense.
Number Facility
78%
The ability to add, subtract, multiply, or divide quickly and correctly.
Oral Comprehension
78%
The ability to listen to and understand information and ideas presented through spoken words and sentences.
Written Expression
78%
The ability to communicate information and ideas in writing so others will understand.
Inductive Reasoning
75%
The ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events).
Information Ordering
75%
The ability to arrange things or actions in a certain order or pattern according to a specific rule or set of rules (e.g., patterns of numbers, letters, words, pictures, mathematical operations).
Oral Expression
75%
The ability to communicate information and ideas in speaking so others will understand.
Problem Sensitivity
75%
The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing that there is a problem.
Top 10 Work Activities
Working with Computers
94%
Using computers and computer systems (including hardware and software) to program, write software, set up functions, enter data, or process information.
Analyzing Data or Information
92%
Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts.
Processing Information
90%
Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.
Getting Information
89%
Observing, receiving, and otherwise obtaining information from all relevant sources.
Making Decisions and Solving Problems
87%
Analyzing information and evaluating results to choose the best solution and solve problems.
Updating and Using Relevant Knowledge
82%
Keeping up-to-date technically and applying new knowledge to your job.
Communicating with Supervisors, Peers, or Subordinates
81%
Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person.
Interpreting the Meaning of Information for Others
81%
Translating or explaining what information means and how it can be used.
Thinking Creatively
78%
Developing, designing, or creating new applications, ideas, relationships, systems, or products, including artistic contributions.
Estimating the Quantifiable Characteristics of Products, Events, or Information
71%
Estimating sizes, distances, and quantities; or determining time, costs, resources, or materials needed to perform a work activity.
Detailed Work Activities
- Develop technical specifications for systems or equipment.
- Advise others on analytical techniques.
- Monitor business indicators.
- Develop business or financial information systems.
- Assess the cost effectiveness of products, projects, or services.
- Apply mathematical models of financial or business conditions.
- Prepare financial documents, reports, or budgets.
- Analyze business or financial data.
- Discuss business strategies, practices, or policies with managers.
- Confer with personnel to coordinate business operations.
- Develop financial analysis methods.
- Analyze risks related to investments in green technology.
- Measure effectiveness of business strategies or practices.
Education
Interests
Investigative
95%
Work involves studying and researching non-living objects, living organisms, disease or other forms of impairment, or human behavior. Investigative occupations are often associated with physical, life, medical, or social sciences, and can be found in the fields of humanities, mathematics/statistics, information technology, or health care service.
Conventional
84%
Work involves following procedures and regulations to organize information or data, typically in a business setting. Conventional occupations are often associated with office work, accounting, mathematics/statistics, information technology, finance, or human resources.
Enterprising
49%
Work involves managing, negotiating, marketing, or selling, typically in a business setting, or leading or advising people in political and legal situations. Enterprising occupations are often associated with business initiatives, sales, marketing/advertising, finance, management/administration, professional advising, public speaking, politics, or law.
Artistic
26%
Work involves creating original visual artwork, performances, written works, food, or music for a variety of media, or applying artistic principles to the design of various objects and materials. Artistic occupations are often associated with visual arts, applied arts and design, performing arts, music, creative writing, media, or culinary art.
Realistic
26%
Work involves designing, building, or repairing of equipment, materials, or structures, engaging in physical activity, or working outdoors. Realistic occupations are often associated with engineering, mechanics and electronics, construction, woodworking, transportation, machine operation, agriculture, animal services, physical or manual labor, athletics, or protective services.
Social
23%
Work involves helping, teaching, advising, assisting, or providing service to others. Social occupations are often associated with social, health care, personal service, teaching/education, or religious activities.
Work Values
Independence
77%
Occupations that satisfy this work value allow employees to work on their own and make decisions. Corresponding needs are Creativity, Responsibility and Autonomy.
Achievement
72%
Occupations that satisfy this work value are results oriented and allow employees to use their strongest abilities, giving them a feeling of accomplishment. Corresponding needs are Ability Utilization and Achievement.
Recognition
72%
Occupations that satisfy this work value offer advancement, potential for leadership, and are often considered prestigious. Corresponding needs are Advancement, Authority, Recognition and Social Status.
Working Conditions
72%
Occupations that satisfy this work value offer job security and good working conditions. Corresponding needs are Activity, Compensation, Independence, Security, Variety and Working Conditions.
Relationships
62%
Occupations that satisfy this work value allow employees to provide service to others and work with co-workers in a friendly non-competitive environment. Corresponding needs are Co-workers, Moral Values and Social Service.
Support
62%
Occupations that satisfy this work value offer supportive management that stands behind employees. Corresponding needs are Company Policies, Supervision: Human Relations and Supervision: Technical.
Colleges
SAGE Scholars Member Schools that offer majors leading to this career.
Check out the College Search to see the full list of schools with majors for this career.