Quant investing: Art or science?

The case for quantitative investing

Making sense of the growing volume of market and economic data is a serious challenge – particularly so when allocators try to separate what really matters from the noise. Quantitative methods help solve this problem. Explore the latest insights into quantitative tools, strategies, and approaches with the hand-picked content presented below.

Quantifying the Magnificence of the Magnificent 7 (Venn)

Factor analysis helps to separate returns driven by common systematic factors from what is truly unique.

Stagflationary Stock Returns (U.S. Federal Reserve)

The recent inflationary episode has renewed interest in understanding how inflation affects firms and the economy more broadly.

Another Factor Driving Private Credit’s Expansion (HPS - a part of BlackRock)

Market volatility has been another factor behind the rise of private credit's allure among investors.

VIX1D and Common Volatility Forecasting Models for the U.S. Equities

With the introduction of VIX options, VIX futures, and further exchange-traded products based on them, an entire industry has emerged around VIX.

Volatility’s Blueprint: How Markets Really Move (Top Traders Unplugged)

From the first futures in 1848 to today’s zero-day options, Cem Karsan, Mandy Xu, and Ed Tom chart how derivatives have evolved.

The Role of Sectors and Factors in Concentrated Markets (S&P Dow Jones Indices)

In this video, S&P DJI’s Ben Vörös joins Anu Ganti to explore what sectors and factors can help investors avoid market concentration risks.

Unlocking REIT Returns: Real Estate Investment Factors (Alpha Architect)

After testing over 15,000 additional predictors, the authors of this paper found that nearly all were subsumed by their six-factor model.

Commodity Option Return Predictability

Commodity futures options have experienced significant growth in the past 20 years, both in terms of daily trading volume and in open interest.

Market Crash Risk and Return Predictability

The authors of this paper examine a real-time global market crash index and find that elevated crash risk is closely linked to both return predictability and economic growth predictability.

An Updated Methodology for Quantum Risk Assessment (Global Risk Institute)

Discussion on a process designed to examine, analyze and identify quantum vulnerabilities and the risk they pose to an organization’s sensitive assets and information.