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Data-Driven Strategies

Quantitative Methods

Systematic, data-driven investment strategies using mathematical models, algorithms, and statistical analysis

Total Methods
12
Avg Sharpe
0.8-1.5
Focus
Systematic
Complexity
High
Quantitative

Momentum Investing

Momentum Equity Factor

Systematic strategy exploiting the tendency of assets with strong recent performance to continue outperforming. Based on Jegadeesh and Titman's seminal research.

Returns
8-12%
Sharpe
0.5-1.0
Max DD
20-40%
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Quantitative

Mean Reversion

Statistical Pairs Trading

Capitalize on the principle that asset prices tend to oscillate around their long-term average. Uses cointegration analysis and statistical frameworks.

Returns
6-10%
Sharpe
0.6-1.2
Best In
Range
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Quantitative

Factor Investing

Factor Multi-Factor

Systematic approach targeting exposure to specific return drivers like value, momentum, quality, and low volatility using Fama-French models.

Excess
2-4%
Sharpe
0.7-1.3
AUM
$2T+
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Quantitative

Statistical Arbitrage

Arbitrage Market-Neutral

Sophisticated strategy exploiting temporary pricing inefficiencies between related securities using cointegration theory and advanced statistical models.

Returns
8-15%
Sharpe
1.0-2.0
AUM
$100B+
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Quantitative

Machine Learning / AI

AI/ML Deep Learning

Advanced strategies using neural networks, NLP, and alternative data to identify patterns and predict market movements beyond traditional methods.

Sharpe
1.0-2.0
Data
Alt
Model
NN
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Quantitative

Trend Following

CTA Multi-Asset

Time-tested strategy capturing persistent price trends across asset classes using moving averages, breakouts, and systematic position management.

Returns
8-12%
Sharpe
0.6-1.0
Crisis
Alpha
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Quantitative

Pairs Trading

Market-Neutral Cointegration

Market-neutral relative value strategy trading correlated securities when their price relationship deviates from historical norms.

Returns
6-12%
Sharpe
1.0-1.5
Beta
Low
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Quantitative

High-Frequency Trading

HFT Microseconds

Ultra-fast trading strategies using advanced technology and co-location to capture fleeting market inefficiencies in milliseconds.

Speed
< 1ms
Sharpe
2.0+
Capital
High
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Quantitative

Volatility Trading

VIX Options

Strategies that profit from changes in market volatility rather than directional price movements, using VIX derivatives and variance swaps.

Returns
10-20%
Risk
High
Tail
Hedge
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Quantitative

Market Making

Liquidity Bid-Ask

Providing liquidity by continuously quoting bid and ask prices, profiting from the spread while managing inventory risk systematically.

Spread
0.1-1%
Volume
High
Risk
Inventory
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Quantitative

Quantitative Event-Driven

Events Earnings

Systematic strategies exploiting predictable patterns around corporate events like earnings, M&A, spinoffs, and index reconstitutions.

Returns
8-15%
Sharpe
0.8-1.2
Catalyst
Event
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Quantitative

Carry Trading

FX Interest Rate

Exploiting interest rate differentials across currencies or assets, borrowing low-yield and investing in high-yield instruments.

Yield
4-8%
Sharpe
0.5-0.8
Risk
Crash
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