The global stock market earthquake, that is, the situation of skyrocketing and plunging, is risky, and investors are constantly looking for other financial products to avoid risks. Among them, quantitative hedge fund is a good financial derivative product to avoid risks. So, what is a quantitative hedge fund? Quantitative hedge fund: quantitative hedge fund is a fund that combines quantitative and hedging concepts, mainly guides investment by statistical methods and mathematical models, responds to changes in financial markets by managing and reducing portfolio system risks, and obtains relatively stable expected returns. Quantify the objects of programmed hedging transactions: stocks, bonds, futures, spot, options, etc. The operation process of quantitative hedging products: first, build a long portfolio of stocks through quantitative investment, then short stock index futures to hedge market risks, and finally obtain stable excess expected returns. The specific method of quantitative stock selection The quantitative analyst establishes a certain model after formulating the rules, and first tests it with historical data to see if it can make money; If possible, inject a small amount of money and accumulate firm transactions outside the model. If there is a profit after the firm offer, expand the amount of funds to judge whether it has an impact on the investment results. Advantages of quantitative hedging: 1, wide investment scope and flexible investment strategy. 2, in pursuit of absolute expected return as the goal. 3. Better risk-adjusted expected return. 4. It has low correlation with major market indexes and has asset allocation value. For example, Huatai Bairui is a quantitative hedge fund for stock index futures hedging, and its expected return is divided into three parts: the contribution of stock long portfolio to excess expected return; Expected return contribution of basis fluctuation of stock index futures: expected return contribution of net exposure. Investment is risky, so be cautious when entering the market.