<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1406241429584765&amp;ev=PageView&amp;noscript=1">

Blog

Explore. Learn. Engage.

2 min read

A Quantamental Journey

By Gurinder Tamber on Jul 27, 2020 8:15:00 AM

Fundamental analysis continues to face numerous challenges. The COVID-19 crisis has led to delayed earnings, repeated analyst revisions, suspended dividends, and the absence of earnings guidance.  Quantitative analysis has long sought to encroach on this territory with its rock-star math. But quant trading models and strategies that mostly rely on pattern recognition can run afoul of the cardinal sin of overfitting. They may also fail to adequately control for political, structural, and behavioural idiosyncrasies.    

Given the recent volatility and relative underperformance of passive investment strategies,  both fundamental and quantitative approaches are looking to reassert their active selves. But increasingly, the generation of alpha requires a combination of methods. As its name suggests, quantamental analysis combines the best of both disciplines.  

Fundamental shops can be helped by quantitative strategies by reducing bad calls from cognitive and emotional biases. Indeed, many such shops are increasingly looking to develop the option of a rigorous quantitative overlay to their investment process using Auto ML and other big data predictive tools.

Machine Learning (ML) has an astonishing ability to extract signal from both fundamental and technical data. When added to the fundamental understanding of, for example, a management team’s ability, the quantamental insight and prediction is invaluable. 

Quantitative shops are well-versed in machine learning but are continuously looking to:Quantitative Journey Icons@4x

Thus, sophisticated ML can augment the investment process of both fundamental and quantitative shops. With Mind Foundry Horizon, you can undertake the stages of the quantitative journey via an easy to use, transparent, and flexible UI. 

HorizonScreenshotDashboard-July23-shadow

Mind Foundry Horizon's machine learning algorithms can be used by analysts, fund managers, and traders to find predictive signal in time-series data.

View the case study

We have a webinar on August 6th where you can get an in-depth look at Horizon’s forecasting capabilities and learn how to use it to build an end to end the time series prediction model, figure out important factors by performing signal analysis, and then wrap your results into a quantitative trading strategy with an acceptable risk profile. Save a seat.

If you want to find out how Mind Foundry Horizon can help fund managers and traders boost their returns with improved insights and predictions, contact me.

Gurinder Tamber

Written by Gurinder Tamber

'G' (Gurinder) is SVP Sales at Mind Foundry. He has 20 years of international experience across funds, banks, energy, and industrials. Prior to Mind Foundry, he spent 5 years in financial technology and 10 years at the forefront of investment capital to renewables. He started his career in commodities trading.

MindFoundryLogo-Color@4x-1

 

mind-foundry-logo-black
NEW-OSI-Landing-Logo-1

NEW-OSI-Landing-Logo-1200

 

MindFoundryLogo-Color@4x-1

 

mind-foundry-logo-black
NEW-OSI-Landing-Logo-1

NEW-OSI-Landing-Logo-1200

 

Upcoming Events

 

17 sep

 

25 sep

 

14 sep update

Stay in Touch

Sign up for our newsletter