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What is Quantitative Market Data Analysis?

Robert Fragnito | Chief Operating Officer

In light of the launch of our new website, many of our clients and readers are interested in understanding what Quantitative Market Data Analysis is all about. Answering this question involves a little explanation. First, we must understand how market experts develop investment philosophies. There are many schools of thought, many approaches and all swear by their methodology.

In our case, we are faced with the daily challenge of maintaining an unbiased approach to markets. It is here where we reach a fork in the road: do you invest in markets based on quantitative analysis or do you invest based on qualitative analysis?

The answer is technically both, but for MCF, quantitative analysis is the compass steering the ship. Qualitative analysis on the other hand, seeks to understand how human emotion drives the reasons behind the drama in markets. It yields heated debates, disagreements, and consistent self-evaluation for this father-son duo. With all this being said, Quantitative Market Data Analysis or QMDA is the result.

Enter the data. Quantitative analysis aims to make sense of what the data in the market is telling us. It is a method of understanding the behavior of markets, economic sectors, or individual securities through the prism of mathematics, statistics, market research and assessment. In addition, we study long term economic cycles and analyze historical returns and economic data for various asset classes.

Methods like QMDA are becoming a more significant element in delivering returns as money managers increase their computing power. Our approach to investments is fundamentally based on this method because it helps us avoid the trap of emotional investing and guides us to rise above the bias in delivering results for our clients.

What people are saying in the Quant world?

Information presented in this video clip represents the views and opinions of the original creators and does not necessarily represent the views or opinions of MCF Capital Management, LLC.