Advanced Quantitative Investment Software For Wealth Managers

Pete Millington

Pete Millington·– November 11th, 2021

Financial technology is keeping up with the ever-changing pace of the modern economy. Standard investment strategies, betting on risk and opportunities are increasingly reliant on the fintech industry for their success. 

Market and Portfolio Analysis

In the past five decades, software has infiltrated all major industries that require analysis, and the financial world is no exception. There is a higher demand for software that can be aiding those providing investment management services and advice. Analytical software has made investing more effective by lowering risks while improving the level and consistency of investment returns. Software designed for market analysis is now used to identify the best investments worldwide.

Investment Management

Quantitative finance is a field of applied mathematics and statistics used to solve some of the complex problems in finance. Individuals who work in quantitative finance are called quantitative analysts or quants for short. Some of the problems solved by quants include derivatives pricing, risk management, and quantitative trading (often implemented algorithmically a.k.a algorithmic trading). Quant software encompasses all of the tools which quants often use to assist them in solving these problems. (Source: www.turingfinance.com)

For years, investment management firms have employed expensive database teams to scope and massage data, and prepare it for quantitative analysts and data scientists. Their data is then run through advanced tools, such as R and Python, to apply machine learning and advanced statistical analysis. These efforts rely on upstream data preparation and production management by these data teams. This process is unwieldy costly and ripe for a new approach.

Finance and Data Science

At Scientific Financial, we believe our quantitative investment software, Quotient, is a game-changer in the fintech space. Quotient uses artificial intelligence and machine data learning to help wealth managers improve asset management of the future.

person using macbook pro on brown wooden table looking at quantitative investment software

Photo by Tech Daily on Unsplash

Quantitative Investment Software

At the heart of our Quotient software lies our Quble technology. This technology provides a powerful solution to the challenging issues of data integration in one comprehensive framework. It’s an innovative and novel approach that seamlessly integrates the power of the Python language and ecosystem with the scalability of SQL processing.

Qubles are data objects, or data structures, that support time-series operations, including support for time-series frequency and currency conversions. Qubles facilitate production systems for large-scale problems, allowing users to push beyond the limitations of traditional memory-based solutions. With Quotient, users can interact with data seamlessly; without the distraction of the details under the hood. This interaction includes data flow synchronization and automated linking of datasets. Users can let Quble logic handle automatically the resolution of currency frequency and security identifier inconsistencies in a historical context. Qubles additionally support flexibility for the handling of null data points in computations and algorithms.

The Quble was designed as a data and vendor-agnostic tool, which means, it can serve a large variety of your data needs. This includes internal data, external data from a variety of sources or formats, as well as, newer non-traditional alternative data sets. This implies that Qubles simplify interfaces.

Qubles provide a modeling paradigm that supports multidimensional, multivariate large-scale time-series data objects. With Qubles’ extensive set of methods, users can craft powerful algorithms that enable a seamless transition from research to production environments. With Quotient’s intuitive user interface, data analysis and algorithm construction come to life through interactive drag-and-drop actions. Screens, reports, and backtests can be constructed quickly and easily.

Imagine a culinary setting - what do you need to create something valuable and creative? You need access to a lot of ingredients, a kitchen, utensils, some recipes, an open palette, and some experience and creativity for this. Imagine Quotient being your high-tech kitchen, your data being your source ingredients, and Qubles providing you with diverse utensils. In the investment world, the name of the game is creativity. When you have your perfect algorithmic recipe, Qubles manage your production line, sourcing your ingredients and guiding the preparation of your meal.

Takeaway

In this age where data science drives the investment management industry, Quotient’s Qubles, through their unique data integration and analytic solutions using SQL and Python, give quantitative investment professionals the mixture of tools to work with that a less equipped kitchen simply cannot offer.