Quantitative Analysis
What Does Quantitative Analysis Mean?
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.
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".
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".
Source: http://www.investopedia.com/terms/q/quantitativeanalysis.asp
This site contains an effective point-by-point discussion of the merits and cautions of quant analysis: http://www.investopedia.com/university/fundamentalanalysis/default.asp
Another perspective from the world of complexity research and science:
Quantitative analysis is a process in analytical chemistry that involvesmeasurement of results such as quantities of substances produced, not just the nature of the reactions that produce them. All quantitative analysis involves counting or measurement in some manner.
It is critical in quantitative analysis to get statistically reliable and generalizable results. Features are classified and counted, and statistical models may be constructed as the scientist attempts to explained mathematically what has occurred. In the end, a properly-done quantitative analysis will be generalizable to a larger population between whom direct comparisons can be made. This enables the scientist to determine genuine properties of a substance and the items which are anomalous.
A quantitative analysis does identify core truths, but it does not necessarily describe a substance in a rich manner. All data is recorded in quantitative analysis as hard data – either the substance is X or it is not. Qualitative analysis, the other major type of analysis, allows scientists to describe items which do not easily fit within a classification.
Both quantitative and qualitative analysis are important to analytical chemistry.
It is critical in quantitative analysis to get statistically reliable and generalizable results. Features are classified and counted, and statistical models may be constructed as the scientist attempts to explained mathematically what has occurred. In the end, a properly-done quantitative analysis will be generalizable to a larger population between whom direct comparisons can be made. This enables the scientist to determine genuine properties of a substance and the items which are anomalous.
A quantitative analysis does identify core truths, but it does not necessarily describe a substance in a rich manner. All data is recorded in quantitative analysis as hard data – either the substance is X or it is not. Qualitative analysis, the other major type of analysis, allows scientists to describe items which do not easily fit within a classification.
Both quantitative and qualitative analysis are important to analytical chemistry.
http://www.iscid.org/encyclopedia/Quantitative_Analysis
HERE'S A TOOL:
The Rise of R: A Tool for Quantitative AnalysisThe R programming language--- is an open source implementation of the S programming language, and is rich and well suited for data operations.
http://www.r-project.org/
R is a statistical package first and foremost and contrasts with Matlab, a commercial and general analytical toolkit. R is an open source implementation of the S programming language, which is implemented in the commercial package S-Plus. It is freely available under the GNU General Public License on multiple platforms and can be downloaded at http://www.r-project.org. R is very similar in function to S-Plus (the syntax is nearly identical), contains built-in tools for time series, regression, etc., has graphing and visualization capabilities, and can be used as a programming environment.
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