What does quantitative investment technology include?
[1] quantization sequence. Through the quantitative analysis of a large number of macroeconomic and microeconomic indicators, we can find important information that affects the stock trend, and then make a prediction on the future trend, and then make a decision on when to buy and sell.
[2] Quantitative stock selection. Similarly, the stocks are analyzed by quantitative methods, and then the high-quality stocks that can get higher than the market rate of return are selected for trading. The common methods of quantitative stock selection are: multi-factor stock selection, style rotation stock selection, industry rotation stock selection, cash flow stock selection, momentum reversal stock selection, trend tracking strategy, analyst consensus expectation strategy, chip distribution stock selection and so on. The most profitable mode of quantitative stock selection is based on cyclical and defensive rotation allocation at the industry level, which is also the most commonly used strategy by institutional investors. In addition, cyclical stocks performed well during the period of expansionary monetary policy, but supported non-cyclical industries in a tight environment. There is a significant difference in industry income between expansionary policy and contractive policy.
[3] Stock index and commodity futures arbitrage. Using quantitative technology to arbitrage investors can get the price difference change between related markets and contracts more quickly and accurately, and make the most favorable investment decision in the shortest time.
The quantitative investment technology in European and American countries has developed quite maturely. Although China's quantitative field is still in the ascendant, the country has stepped up its efforts to train high-level and sophisticated talents in this field, and will certainly catch up in time.