Quantitative finance as the name suggests is the amalgamation of quant and finance. This fancy-sounding domain consists of some rather lucrative career options which not only are high paying but also tend to offer excellent growth prospects.
Working in the quantitative finance domain, your work usually revolves around risk management and analysis where you are required to safeguard your portfolio and ensure maximum ROI for your clients. For those who are comparatively new to this domain, we have aligned the top 4 quantitative finance books which will help give further details about the industry, while at the same time supporting the professionals brush up their skills.
1. Finance: A Quantitative Introduction
If you are looking for great insights into modern finance, then this book by Nico Van De Wijst is the one you should read. The book starts with a theoretical explanation of the various modern finance topics, only to later give more clarity to users with real-life examples and experiences. The book, however, contains certain mathematical models and strategies which only a graduate in maths or finance would be able to understand. Despite this, the book is a great read and a lively version of the various concepts of modern finance.
2. Quantitative Methods for Business
In this book aimed at those fond of advanced mathematics and finance, the authors David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran try and explain the power of quantitative finance. The book is focussed towards basic and advanced risk management and assessment strategies, market evaluations as well as challenges a quant will face during their career. Written from personal experience, the author towards the end also explains how a quant can use MS-Excel for describing and testing various simulation models.
3. Quantitative Risk Management
This book written by Alexander J. McNeil is focussed towards experts in the quantitative finance domain. This book is not a ‘how to guide’ rather is a ‘why’ approach to some of the basic as well as advanced concepts of finance. The author insists that readers need to have proficiency in advanced mathematics to better understand the concepts mentioned in the book. Those who know advanced mathematics will be able to understand better the concepts such as risk assessment, credit rating etc. which have been mentioned clearly in the book.
4. Quantitative Trading With R
Quantitative trading with R is Harry Georgakopoulos approach to explaining to readers how to develop quant strategies using the software. The author who himself is an expert in quantitative finance has tried to incorporate conversational style in his writing which allows the readers to understand the concept better as well as develop trading strategies on their own. The book has everything ranging from basics such as how to trade effectively to advanced topics like risk management. One of the best things about this book is that it contains not only theoretical concepts but also has exercises and notes which help the readers understand topics better.
So, these were the top 4 quantitative finance books which we recommend anyone interested in quantitative finance to read. If you think, there are other better books, then do let us know their names in the comment section below.
