Quantitative Analysis

Purpose

Apply statistics to financial data without being fooled by it. Financial time series violate nearly every assumption of standard statistical methods, and the tools will produce confident, well-formatted, wrong answers without complaint.

When to Use

• Testing whether a signal has predictive value.
• Modeling returns, volatility, or correlations.
• Evaluating a quantitative claim someone else has made.
• Building a factor model or a risk model.

Capabilities