I'm debating between a Master's in Math w/a Concentration in Finance and a Masters in Statistics, (think metropolitan Ivy for both) which has more relevance to trading? Would it matter or does it simply come down to where you get the paper from?
Trending Content - Sales and Trading Forum
Career Resources
I'll say the paper is what matters.
I'd go with math/finance.. but it really depends on what kind of function you hope to be working in. (eg stats may not help as much with derivatives trading.. )
I would go with statistics. I am slightly biased as I am one semester away from finishing a MA in statistics. Masters in math will have courses like Algebra, Topology, Number Theory, Analysis etc. I feel that the math master is way more theoretical and very abstract, where as the statistics, will give you a solid foundation understanding probability and decision making under uncertainty. Alot of the mathematical methods used to evaluate derivatives are statistical in their foundation and those methods that a pure math, i.e. finite difference methods for calculating greeks, can be done using MCMC methods. Just my opinion.
Don't they have a Masters in Applied Mathematics?
Will this masters degree teach you how to cope with stress? To be emotionless between 9:30-4:00 then go back to normal state of mind right after?
Nope, nothing like the real world. But stats/math is useful for developing methods of thinking
I am currently a trader, and as an undergrad, I was a finance major with a math minor - I'll offer my 2 cents.....
As long as your degree has a some quantitative focus, you'll be fine. The stuff you really need to know, you'll learn on the job. I would prioritize based on:
(1) Your interests, assuming you'll enjoy attaining the degree and earn better grades in what you're more interested in;
(2) School reputation. Both sound like safe recruiting bets, so I'd try to find some alum at quant desks/groups you'd be interested in to see where you could get an edge.
If you are at a deadlock, I'd go with math. Someone with a solid background in theoretical math could no doubt teach himself/herself advanced stat, but I don't think the opposite is true. I think the math path gives you more options....but consider this only in a deadlock.
Congrats on your great opportunities and good luck! You can't go wrong either way.
Math vs Stats for Quantitative Finance (Originally Posted: 10/27/2015)
I am studying computer science at the University of Chicago and want to pursue a second major in either Mathematics or Statistics. Which will better prepare me for a career in quantitative finance/trading? It seems like Math is a more legitimate program, but is entirely theoretical, while Statistics has the more applied concepts.
yea, thats true. I did stats all the way to postgraduate (Honours not master, master degree is completely on a research thesis in my uni) and found it reli hard to deal with in the more advanced levels because i did not study any maths paper before. ofcoz some maths you can just learn it pdfs , diff eqt not problem but when i comes to graph theory and real analysis ...i am fucked.
I still remember how painful it was when i learn fourier and hilbert transform in Time Series !!! It would be easier for a maths guy to learn stats or finance but not vicee versa !
You're an undergrad?
Statistics is way better.
Stats are more about randomness of data. Mathematics can be all kinds, including Statistics.
CS+Math fits the quant profile
math; once you know it, stats are easy. Not in the other direction. Also, stocastic processes and the differential equations, taylor series, etc. you'll find in quantitative finance are found in math, not stats
this. regretting over not have taken diffEq again. I would love to take more stat classes, but no way I will trade out math fundamentals (calculus, proofs, linear algebra, etc)
Yes, I am an undergrad. Our stats program does do a fair amount of math: requires a course in each multivar calc, diff eq's, and linear alg. I guess the crux of my question is: Are the real analysis courses in the math major useful for quantitative finance, or are the proofs too theoretical for any practical purpose? Also, are there any specific classes I should take, both inside and outside math/stat, to prep for quantitative finance?
could you ask somebody in Booth? They don't have undergrad programs, I don't think they'd mind if you asked...after all, They're teaching some of the best quantitative MBA graduates
I work in derivatives, and pretty much everything in my area revolves around statistics on some level, and I only need to understand math beyond basic calculus if I am reading academic papers, which I usually don't as they have very little practical information for the amount of time spent reading them). Depends on what you want to do really- if you want a sales job it probably doesn't matter, if you want to be a quant in FI, math might be a better route.
Thanks for the responses gents. I'm looking to finish up and get on a desk, preferably derivatives. I'm leaning more towards stats the more research I conduct, plus which I have more fun (if one can say that) with statistics versus the higher level more theoretical math. Thanks again.
For derivatives trading stats is clearly the most relevant subject matter along with calculus.
But a degree in math looks more impressive on paper -- even though it's less directly relevant. All else being equal, math degree is a stronger positive signal of the person's intellectual horsepower... rightly or wrongly.
I think you mean probability theory? ie Martingale approaches? Thats only a small portion of stats I believe.. Would probably be covered in a good math course as well..
The rest of the time (in stats) will be spent studying obscure statistical tests and procedures.. which might be useful in another area of finance.
I'm not sure a degree in statistics would let you learn prerequisites for finance in continuous time like measure theory, but at the same time a degree in mathematics will have you do stuff whose relevant is dubious.
Actually I believe you have been misinformed by statman. I am currently a Mathematics undergrad in pure mathematics. Yes this type of math is extremely abstract and is only good for going on to graduate school and phd level to do research in pure mathematics. However, from what it sounds like an Applied Mathematics Finance degree IS NOT PURE MATH. I have been looking into it and it is actually VERY LITTLE MATH it is really only 1 or 2 course in mathematical finance (not remotely close to pure mathematics as there is no proofs what so ever) . Also the majority of the other courses are Finance courses which involve risk analysis, securities, options, futures, real estate markets.. ect. Now this is coming from some research from many schools including ivy leagues such as Boston University, Columbia University, MIT (which is a 1 year program). You can just type in google "Masters in Financial Mathematics" and you will get a lot of results from either applied mathematics finance degrees or financial engineering degrees. Now to answer your question as for wanting to be a trader and which is better I would have to say neither one will probably give you a direct edge in trading itself. However, both will give you the skills to go further into risk analysis apart from just trading. I will say most Math Finance degrees have Stats courses, finance courses, accounting, and non-pure math courses (i.e financial mathematics). So overall if that sounds interesting to you that is the road to go. A pure stats degree will have a few good business applicable stats courses but it will also have a lot deeper stats courses that will be more for medical, or other statistical analyses. I will also say I am currently a b.s in mathematics (pure) but may be switching into a Mathematics/Statistics degree and then entering a Applied Mathematical Finance M.S.
Obviously my comment is a little late to the table but to any of you guys currently looking for a better answer I think it will help.
Est optio quaerat impedit et totam quas. Ad omnis deserunt pariatur atque. Mollitia voluptatibus quis culpa et quo fuga dicta.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Quod quidem sit ad aspernatur. Deleniti ex expedita eos quae. In impedit sit facilis omnis pariatur expedita praesentium recusandae.
Sed eum soluta totam asperiores. Non alias ab voluptatem voluptatum eaque soluta.