The Origin and Development of Quantitative Investing

The historical origin and development of quantitative investmentScience and technology have brought unprecedented new experiences to people. Virtual reality, VR, AR, mixed reality, MR and other technologies are the areas that technology giants are most passionate about. The development of artificial intelligence and artificial intelligence has promoted the rapid development of technologies such as voice technology, driverless cars, driverless cars and intelligent robots. With the emergence of new technologies, the entire world has undergone earth-shaking changes. Technology is closely connected with human life. With the development of science and technology, new technologies are constantly changing the way people invest.quantitative investmentIt has gradually become the mainstream of the market. However, many investors are still unfamiliar with quantitative investing.Is it reliable to do quantitative trading individually?Today we will briefly introduce the capital asset pricing model proposed by William et al. in the United States in the 1960s.

It was an important theoretical basis for financial investment performance in the 1970s and 1980s. In this process, the option pricing model created by Blake Scholes and others was quickly applied to the financial field.

Stephen Ross's multi-factor theory has become the basic theory of stock quantification. In the 1990s, innovation in financial markets achieved unprecedented development. In 1992, people proposed the three-factor model. According to this model, people believed that the excess return of the stock market was uncertain, so they spent most of their time on quantitative investment, thus creating a new period of development. After 2000, with the new dawn of quantitative investment, the development of modern finance, the application of computer technology, changes in trading rules, and the reduction of transaction costs, quantitative investment has developed rapidly. Looking back at the development history of quantitative investment in China, we can see that it has developed rapidly in the past ten years or so. After the financial crisis in 2008, many Chinese people on Wall Street in the United States returned to China for development. Technology entered the era of intelligence. Quantitative investment also showed some new trends, from quantitative investment to intelligent investment, and investment also shifted from rationality to rationality.

From the traditional high-return strategy to a steady income strategy, from point-to-point to overall quantitative investment, from a single fixed strategy to multi-strategy dynamic learning, and from the classical traditional investment method to a quantitative investment, this gives quantitative investment room for development. According to the experience of U.S. economic development, quantitative investment is stable in a sense and is beneficial to the market most of the time. At the same time, we must also realize that quantitative investment is not a perpetual motion machine. We must continue to improve the level of quantitative investment in our country, gradually integrate with international standards, promote quantitative investment step by step, strictly control risks, strengthen supervision, formulate effective regulatory standards for quantitative products, rational and legal relationships between quantitative products, standardize the appropriateness of investors, and at the same time establish a centralized monitoring platform for quantitative products to promote the vigorous development of quantitative investment in China. The above point of view is only a reference and does not provide any investment advice. Please pay attention to Liangmi Financial Services.