Data Analyst vs. Quantitative Analyst: What Are the Differences?

Data analysts and quantitative analysts are both in high demand in today’s business world. With the ever-growing amount of data being collected, these professionals are needed to help make sense of it all. Though these roles share some similarities, there are several key differences between them.

In this article, we discuss the differences between data analysts and quantitative analysts, and we provide additional information on related careers.

What is a Data Analyst?

Data Analysts collect, organize and analyze large sets of data to identify trends, patterns and relationships. They use statistical techniques and software programs to make sense of data and present their findings in reports, graphs and other visuals. Data Analysts often work in a business setting to help companies make better decisions by understanding customer behavior, improving marketing strategies and increasing operational efficiency. They may also work in the public sector to help government agencies track crime patterns, predict traffic congestion or forecast economic trends.

What is a Quantitative Analyst?

Quantitative analysts use mathematical and statistical methods to analyze financial data and make predictions about financial markets. They develop models that help identify trends and relationships between different securities. They also use their models to calculate the risk and return of investment portfolios. Quantitative analysts typically work for banks, hedge funds, asset management firms and insurance companies. They often have a background in mathematics, economics or finance.

Data Analyst vs. Quantitative Analyst

Here are the main differences between a data analyst and a quantitative analyst.

Job Duties

Both data analysts and quantitative analysts perform many of the same tasks, such as collecting and analyzing data. However, the types of data they focus on differ. Data analysts typically study user behavior to understand how people interact with a company. For example, a data analyst might look at how many customers purchase a specific product and what other products they purchase, where they purchased the product and how they paid for it, when they purchased the product and how often they purchase that product.

Quantitative analysts focus more specifically on numerical data, such as sales figures, profit margins and mathematical models. They may use this information to predict future outcomes or develop strategies to improve a business. For example, a quantitative analyst might determine that a certain product is too expensive to manufacture and sell based on current sales numbers. They can then inform other members of an organization so that they can make changes before the product goes into production.

Job Requirements

Data analysts typically need at least a bachelor’s degree in computer science, mathematics or another related field. They might also pursue a master’s degree in business administration with a focus on data analytics. Data analysts might also earn certifications to show employers that they have the skills needed to succeed in the role. For example, the Certified Analytics Professional (CAP) credential is offered by INFORMS, an organization for professionals who work with data.

Quantitative analysts usually need a bachelor’s degree in mathematics, statistics, economics or another quantitative field. They might also pursue a master’s degree or doctorate in a similar field. Many quantitative analysts also hold professional certifications, such as the Financial Risk Manager (FRM) credential offered by the Global Association of Risk Professionals. This credential shows employers that quantitative analysts have the skills needed to manage financial risks.

Work Environment

Data analysts and quantitative analysts typically work in different environments. Data analysts often work for companies or organizations that collect data, such as marketing firms, healthcare providers or government agencies. They may also work for private individuals who need help with their personal data.

Quantitative analysts usually work in a more traditional office setting, where they can collaborate with other professionals to solve problems. Quantitative analysts may also work on Wall Street, helping financial institutions make decisions about investments.

Skills

Both data analysts and quantitative analysts use analytical skills to examine data and draw conclusions from their findings. They both also need to have strong math skills to perform calculations and understand complex data sets. However, there are some key differences in the skills that these professionals use on the job.

Data analysts typically use programming languages, like SQL, to extract data from databases. They then use statistical software, like Excel, to clean and organize the data. Once the data is organized, they use their analytical skills to examine it and look for trends. Data analysts also benefit from having visualization skills, as they often create charts and graphs to communicate their findings to others.

Quantitative analysts usually have more of a focus on financial data. They use their mathematical skills to build models that can predict future market trends. They also use their programming skills to develop algorithms that can be used by traders to make decisions about buying and selling securities. Quantitative analysts typically have a deep understanding of financial concepts, like risk management and portfolio theory.

Salary

Data analysts can earn an average salary of $75,765 per year, while quantitative analysts can earn an average salary of $113,816 per year. The average salary for both positions may vary depending on the size of the company at which you work, location of your job and the level of experience you have prior to pursuing either position.