<s>
Applied	O
quantitative	O
analysis	O
is	O
commonly	O
associated	O
with	O
quantitative	B-Algorithm
investment	I-Algorithm
management	I-Algorithm
which	O
includes	O
a	O
variety	O
of	O
methods	O
such	O
as	O
statistical	O
arbitrage	O
,	O
algorithmic	O
trading	O
and	O
electronic	O
trading	O
.	O
</s>
<s>
Modern	O
quantitative	B-Algorithm
investment	I-Algorithm
management	I-Algorithm
was	O
first	O
introduced	O
from	O
the	O
research	O
of	O
Edward	O
Thorp	O
,	O
a	O
mathematics	O
professor	O
at	O
New	O
Mexico	O
State	O
University	O
(	O
1961	O
–	O
1965	O
)	O
and	O
University	O
of	O
California	O
,	O
Irvine	O
(	O
1965	O
–	O
1977	O
)	O
.	O
</s>
<s>
Considered	O
the	O
"	O
Father	O
of	O
Quantitative	B-Algorithm
Investing	I-Algorithm
"	O
,	O
Thorp	O
sought	O
to	O
predict	O
and	O
simulate	O
blackjack	B-Application
,	O
a	O
card-game	O
he	O
played	O
in	O
Las	O
Vegas	O
casinos	O
.	O
</s>
<s>
He	O
was	O
able	O
to	O
create	O
a	O
system	O
,	O
known	O
broadly	O
as	O
card	O
counting	O
,	O
which	O
used	O
probability	O
theory	O
and	O
statistical	O
analysis	O
to	O
successfully	O
win	O
blackjack	B-Application
games	O
.	O
</s>
<s>
Typically	O
,	O
a	O
quantitative	O
analyst	O
will	O
also	O
need	O
extensive	O
skills	O
in	O
computer	O
programming	O
,	O
most	O
commonly	O
C	B-Language
,	O
C++	B-Language
,	O
Java	B-Language
,	O
R	B-Language
,	O
MATLAB	B-Language
,	O
Mathematica	B-Language
,	O
and	O
Python	B-Language
.	O
</s>
<s>
In	O
particular	O
,	O
Master	O
's	O
degrees	O
in	O
mathematical	O
finance	O
,	O
financial	O
engineering	O
,	O
operations	O
research	O
,	O
computational	B-Algorithm
statistics	I-Algorithm
,	O
applied	O
mathematics	O
,	O
machine	O
learning	O
,	O
and	O
financial	O
analysis	O
are	O
becoming	O
more	O
popular	O
with	O
students	O
and	O
with	O
employers	O
.	O
</s>
<s>
Although	O
highly	O
skilled	O
analysts	O
,	O
FOQs	O
frequently	O
lack	O
software	B-General_Concept
engineering	I-General_Concept
experience	O
or	O
formal	O
training	O
,	O
and	O
bound	O
by	O
time	O
constraints	O
and	O
business	O
pressures	O
,	O
tactical	O
solutions	O
are	O
often	O
adopted	O
.	O
</s>
<s>
These	O
differ	O
from	O
front	O
office	O
tools	O
in	O
that	O
Excel	B-Application
is	O
very	O
rare	O
,	O
with	O
most	O
development	O
being	O
in	O
C++	B-Language
,	O
though	O
Java	B-Language
,	O
C#	B-Application
and	O
Python	B-Language
are	O
sometimes	O
used	O
in	O
non-performance	O
critical	O
tasks	O
.	O
</s>
<s>
LQs	O
are	O
required	O
to	O
understand	O
techniques	O
such	O
as	O
Monte	B-Algorithm
Carlo	I-Algorithm
methods	I-Algorithm
and	O
finite	B-Algorithm
difference	I-Algorithm
methods	I-Algorithm
,	O
as	O
well	O
as	O
the	O
nature	O
of	O
the	O
products	O
being	O
modeled	O
.	O
</s>
<s>
while	O
this	O
is	O
supplemented	O
with	O
various	O
forms	O
of	O
stress	O
test	O
,	O
expected	B-Algorithm
shortfall	I-Algorithm
methodologies	O
,	O
economic	O
capital	O
analysis	O
,	O
direct	O
analysis	O
of	O
the	O
positions	O
at	O
the	O
desk	O
level	O
,	O
</s>
<s>
Quantitative	O
developers	O
,	O
sometimes	O
called	O
quantitative	O
software	B-General_Concept
engineers	I-General_Concept
,	O
or	O
quantitative	O
engineers	O
,	O
are	O
computer	O
specialists	O
that	O
assist	O
,	O
implement	O
and	O
maintain	O
the	O
quantitative	O
models	O
.	O
</s>
<s>
They	O
tend	O
to	O
be	O
highly	O
specialised	O
language	O
technicians	O
that	O
bridge	O
the	O
gap	O
between	O
software	B-General_Concept
engineers	I-General_Concept
and	O
quantitative	O
analysts	O
.	O
</s>
<s>
The	O
term	O
is	O
also	O
sometimes	O
used	O
outside	O
the	O
finance	O
industry	O
to	O
refer	O
to	O
those	O
working	O
at	O
the	O
intersection	O
of	O
software	B-General_Concept
engineering	I-General_Concept
and	O
quantitative	O
research	O
.	O
</s>
<s>
Because	O
of	O
their	O
backgrounds	O
,	O
quantitative	O
analysts	O
draw	O
from	O
various	O
forms	O
of	O
mathematics	O
:	O
statistics	O
and	O
probability	O
,	O
calculus	O
centered	O
around	O
partial	O
differential	O
equations	O
,	O
linear	B-Language
algebra	I-Language
,	O
discrete	O
mathematics	O
,	O
and	O
econometrics	O
.	O
</s>
<s>
These	O
skills	O
include	O
(	O
but	O
are	O
not	O
limited	O
to	O
)	O
advanced	O
statistics	O
,	O
linear	B-Language
algebra	I-Language
and	O
partial	O
differential	O
equations	O
as	O
well	O
as	O
solutions	O
to	O
these	O
based	O
upon	O
numerical	B-General_Concept
analysis	I-General_Concept
.	O
</s>
<s>
Commonly	O
used	O
numerical	B-General_Concept
methods	I-General_Concept
are	O
:	O
</s>
<s>
Finite	B-Algorithm
difference	I-Algorithm
method	I-Algorithm
–	O
used	O
to	O
solve	O
partial	O
differential	O
equations	O
;	O
</s>
<s>
Monte	B-Algorithm
Carlo	I-Algorithm
method	I-Algorithm
–	O
Also	O
used	O
to	O
solve	O
partial	O
differential	O
equations	O
,	O
but	O
Monte	B-Algorithm
Carlo	I-Algorithm
simulation	I-Algorithm
is	O
also	O
common	O
in	O
risk	O
management	O
;	O
</s>
<s>
Ordinary	B-General_Concept
least	I-General_Concept
squares	I-General_Concept
–	O
used	O
to	O
estimate	O
parameters	O
in	O
statistical	O
regression	O
analysis	O
;	O
</s>
<s>
Spline	B-Algorithm
interpolation	I-Algorithm
–	O
used	O
to	O
interpolate	O
values	O
from	O
spot	B-Algorithm
and	I-Algorithm
forward	I-Algorithm
interest	I-Algorithm
rates	I-Algorithm
curves	I-Algorithm
,	O
and	O
volatility	O
smiles	O
;	O
</s>
<s>
These	O
quantitative	O
analysts	O
tend	O
to	O
rely	O
more	O
on	O
numerical	B-General_Concept
analysis	I-General_Concept
than	O
statistics	O
and	O
econometrics	O
.	O
</s>
<s>
The	O
mindset	O
,	O
however	O
,	O
is	O
to	O
prefer	O
a	O
deterministically	O
"	O
correct	O
"	O
answer	O
,	O
as	O
once	O
there	O
is	O
agreement	O
on	O
input	O
values	O
and	O
market	O
variable	O
dynamics	O
,	O
there	O
is	O
only	O
one	O
correct	O
price	O
for	O
any	O
given	O
security	O
(	O
which	O
can	O
be	O
demonstrated	O
,	O
albeit	O
often	O
inefficiently	O
,	O
through	O
a	O
large	O
volume	O
of	O
Monte	B-Algorithm
Carlo	I-Algorithm
simulations	I-Algorithm
)	O
.	O
</s>
