quantitative analysis

The testing of a substance or mixture to determine the amounts and proportions of its chemical constituents.

A business or financial analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically.

Quantitative analysis can be done for a number of reasons such as measurement, performance evaluation or valuation of a financial instrument. It can also be used to predict real world events such as changes in a share price.

Investopedia Says:
In broad terms, quantitative analysis is simply a way of measuring things. Examples of quantitative analysis include everything from simple financial ratios such as earnings per share, to something as complicated as discounted cash flow, or option pricing.

Although quantitative analysis is a powerful tool for evaluating investments, it rarely tells a complete story without the help of its opposite - qualitative analysis. In financial circles, quantitative analysts are affectionately referred to as "quants", "quant jockeys" or "rocket scientists".

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Analysis dealing with measurable factors as distinguished from such qualitative considerations as the character of management or the state of employee morale. In credit and securities analysis, examples of quantitative considerations are the value of assets; the cost of capital; the historical and projected patterns of sales, costs, and profitability and a wide range of considerations in the areas of economics; the money market; and the securities markets. Although quantitative and qualitative factors are distinguishable, they must be combined to arrive at sound business and financial judgments. See also Qualitative Analysis.

Description of the components of a phenomenon, such as the movement of a mechanical system, in numerical terms. Compare qualitative analysis.

Quantitative analysis may refer to:

• Quantitative analyst, in finance, someone who applies mathematics, among others stochastic calculus, to finance
• Quantitative analysis (chemistry), in analytical chemistry, the measurements of quantities of substances produced in reactions rather than simply noting the nature of the reactions

Quantitative analysis may also be:

• Statistics and statistical analysis techniques rather than the use of mathematical material in social science

• Quantitative Analysis of Behavior

• Mathematical psychology

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