Financial Quantitative Analysts

Have you ever wondered how those massive corporations manage to rake in annual profits of millions of dollars, as we hear and read about from time to time? One of the biggest secrets behind those companies' success lies in their ability to seek out investments in sectors expected to succeed in the future, or to think about developing new products that are likely to be well received when launched, whether in local or global markets. One of the best examples of this is what Jeff Bezos, the founder of Amazon, did back in 1998, when he bought $250,000 worth of shares in Google, which was just a fledgling startup at the time — today that investment is worth more than two billion dollars. Another example of investing in the development of new products can clearly be seen in what Apple did when it created the iPhone and iPad smartphones and tablets, which the whole world now uses. There are hundreds of examples we could give you of successful investments made by different companies around the world, whether in our era or in past decades, but you need to understand clearly that these investments don't happen randomly or get left to chance or luck. In the world of finance and business, everything has to be calculated and studied carefully, because companies are risking millions of dollars here — so it's not as simple as you might think. There are experts in the world of finance and business who conduct precise studies and research and analyze massive amounts of data before companies venture into any new investments, and these experts are called "quantitative analysts." Quantitative analysts are professionals who use a variety of tools, techniques, and mathematical and statistical models to analyze financial data. Their job is to make predictions based on market trends, and they use complex algorithms to forecast the future of investments. With their expertise, companies can make informed investment decisions that reduce risk and increase profits. For example, quantitative analysts were effective in predicting the 2008 financial crisis — they identified the risks associated with high-risk mortgages, which helped companies avoid investing in them, while companies that ignored these recommendations suffered heavy losses as a result of the crisis.

Meet the Writer: Waleed Abo Omiraa