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Quantitative Investing Basics

Introduction to systematic, data-driven investment strategies.

StockLrn Team
10 min read
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Let Data Drive Decisions

Quantitative investing uses mathematical models and data analysis to make investment decisions, removing emotional bias.

Core Concepts

  • Factors: Characteristics like value, momentum, quality that predict returns
  • Backtesting: Testing strategies on historical data
  • Risk Models: Understanding and controlling portfolio risk
  • Diversification: Spreading bets across many positions

Common Factor Strategies

Value (buying cheap stocks), Momentum (buying winners), Quality (buying profitable companies), and Low Volatility (buying stable stocks) are well-researched factors.

Getting Started

You don't need to code. Factor ETFs and screeners make quantitative approaches accessible to individual investors.