Quantitative hedge

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What is quantitative hedging?

Hedge funds are investment funds that have more flexibility than other "classic" investment funds, such as mutual funds, due to their lower exposure to financial regulations. 

Among these hedge funds are quantitative funds which, in order to make investment decisions, rely on quantitative analysis techniques that use mathematical and statistical modelling, measurement and research to (try to) predict market behaviour. Their strategies are protean, and it is difficult if not impossible to list them all. 

The particularity of quantitative trading lies in the fact that the trading is systematic and most of the time automated. Usually, the strategies developed by these funds are not published. 

Quantitative hedging uses thousands of analyses, such as historical data series and variance and covariance analyses, which are then used for an investment strategy. This data can cover both financial data such as stock price series and economic fundamentals.

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