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Quantitative Analysis

What is quantitative analysis?

Quantitative analysis in investing is the process of analyzing the characteristics of an investment opportunity via a statistical lens to determine if it is a viable choice.

Analysts will often build models to test hypotheses on whether or not an investment will perform well using historical data, ratios, and assumptions. Morningstar also uses quantitative research methods to rate investments. We use the Morningstar Quantitative Rating™ to assign ratings to investments not directly covered by analysts by using models based on our analysts' decision-making processes.