What is quantitative accounting?

Quantitative accounting is a field of applied mathematics, which directly concerns the use of existing currency values ​​to derive other values. Most forms of applied mathematics are used as predictive processes to analyze or understand data trends. Quantitative accounting is not concerned about any value other than supplied; Nor does the consumption of trends. The field receives existing known value, for example, the price of shares at a certain time, and uses this value to derive other values ​​associated with it. This field goes through many names: quantitative finances and mathematical finances are two common alternatives. Speculative strategies and money -based money were common at the age of 80 and had a very negative overall impact on the economies of most developed nations. The use of quantitative measures to determine fair and adequate methods and derivation of value has emerged as an excellent method of maintaining economic stability. This served most investors well up to the middle of twentyYears where excessive analysis of simple data has become one of the main factors in the worldwide recession.

The main focus of this field is the analysis of existing data for the purpose of searching for correlation information. Put simply, rather than dealing with why what is what it is, the field simply takes existing information and sends new information. New information is related to the data given in terms of time and scope. If the old data described something that existed at 3:18 pm, the new data describes something related at 3:18 A.M.

This is the difference between quantitative accounting and quantitative economy. The economist would take the information and use it to find patterns. For instances, the economist can take information along with the same information in the last few weeks and develop trends analysis. This would indicate for potential investors the likelihood that in the coming weeksthe rising or down.

There are two main focus on quantitative accounting: portfolio management and derivative prices. In both cases, the process is the same. The accountant is provided with information on the derivative or portfolio. Using available information, the accountant determines the total value of any derived goods or part of the portfolio at the time of the original numbers. The origin of the original data may not be based in fact; A speculative investor can provide a likely future value to determine related information in the future.