In the financial market, there is no business that can make a steady profit, so no matter what strategy or trading method is adopted, it is inevitable to lose money. Quantitative hedging will also lose money, sometimes it may be very tragic, and the process and various safeguard measures involved in quantitative hedging are very demanding. If one trading link runs normally and another trading link has problems, if hedging is not timely, it will lead to greater risk exposure.

Quantitative hedging is a combination of the concepts of quantification and hedging. "Quantification" refers to the use of statistical methods and mathematical models to guide investment, and its essence is the quantitative practice of qualitative investment. "Hedging" refers to managing and reducing the risk of the portfolio system in order to cope with the changes in the financial market and obtain relatively stable returns. In practice, hedge funds often use quantitative investment methods, and they are often used alternately, but quantitative funds are not exactly the same as hedge funds.