Quantitative investing is an investment strategy that uses mathematical models and statistical techniques to identify trading opportunities. Investors analyze large sets of data, including historical prices and financial metrics, to make informed decisions about buying and selling assets. This approach often relies on algorithms to execute trades quickly and efficiently.
The goal of quantitative investing is to achieve consistent returns by minimizing human emotions and biases in the decision-making process. Many hedge funds and institutional investors employ quantitative strategies, utilizing tools from fields like data science and machine learning to enhance their investment processes.