The profession of Quantitative Analyst
The Quantitative Analyst plays a central role in trading floors, investment banks, and hedge funds.
Through expertise in mathematical modeling, they develop complex models to analyze financial data and make informed investment decisions.
Whether it’s for pricing financial products, portfolio management, or risk hedging, the quant tackles complex issues requiring excellent knowledge of mathematics, statistics, and computer tools.
Role and responsibilities of the Quantitative Analyst
The Quantitative Analyst designs, tests, and implements mathematical models to assess risks and optimize financial strategies.
They often work closely with traders, portfolio managers, and risk management teams to provide decision-making tools based on precise and rigorous analyses. Their expertise is also sought to automate financial processes or develop trading algorithms.
Daily tasks
Here are some of the daily tasks of a Quantitative Analyst:
- Design and develop mathematical models to evaluate financial products and market risks.
- Analyze complex financial data using advanced statistical methods.
- Collaborate with traders to develop automated trading strategies.
- Test and validate financial models to ensure their accuracy and effectiveness.
- Optimize investment portfolios using quantitative techniques.
- Monitor and adjust models based on market changes and new data.
Salaries and career progression
Early in their career, a Quantitative Analyst can expect an annual gross salary between €50,000 and €70,000 in Paris.
With experience, this salary can exceed €100,000, or even €150,000 in major financial institutions or hedge funds, along with significant variable compensation.
Career advancement opportunities include positions as senior quant, risk manager, or front-office roles in management or trading.
Required skills
- Proficiency in applied mathematics, statistics, and probability
- Advanced skills in financial modeling and programming (Python, C++, R)
- Expertise in risk management and derivatives
- Strong skills in financial data analysis
- Ability to solve complex problems and develop algorithms
- Analytical mindset and rigor in designing predictive models
What studies are required to become a Quantitative Analyst ?
To become a Quantitative Analyst, a solid background in mathematics, financial engineering, or physics is essential.
A master’s degree (bac+5) in quantitative finance, applied mathematics, or statistics is generally required. Programming skills (Python, C++, R) are also highly valued in this field.
Training to Become a Quantitative Analyst at Dauphine-PSL
Université Paris Dauphine-PSL offers several suitable programs for becoming a Quantitative Analyst.
The Master 2 Statistical and Financial Engineering, Mathematics of Insurance, Economics and Finance, and Mathematics, Machine Learning, Sciences, and Humanities are highly recommended programs for acquiring advanced technical skills in quantitative finance, modeling, and risk management.
These programs equip students with the mathematical and computational tools needed to succeed in the field of quantitative finance.