Types of Financial Data Used in Quantitative Analysis
Quantitative analysis utilizes a wide range of financial data to assess investment opportunities and inform decision-making. Key data types include:
1. Historical Financial Statements:
Income statement: Provides insights into a company's revenue, expenses, and profits over time.
Balance sheet: Depicts a company's assets, liabilities, and equity at a specific point in time.
Cash flow statement: Outlines the sources and uses of a company's cash over a period.
Strengths:
Detailed and comprehensive financial performance information.
Provides time-series data for trend analysis.
Used for financial ratio calculations and forecasting.
Weaknesses:
Historical data may not reflect future performance.
Can be su....
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