Going into finance after physics PhD

Click For Summary

Discussion Overview

The discussion revolves around the prospects and requirements for physics PhD graduates considering careers in finance, particularly as quantitative analysts (quants). Participants explore the relevance of their physics background, necessary skills, and the current job market landscape in finance, especially in the context of the US and Europe.

Discussion Character

  • Exploratory
  • Technical explanation
  • Debate/contested
  • Mathematical reasoning

Main Points Raised

  • Some participants inquire about the current job market for physics PhDs in finance, referencing past trends and the ongoing demand for such candidates.
  • It is suggested that knowledge of probability, stochastic analysis, and partial differential equations (PDEs) is important for roles in finance.
  • Some participants note that familiarity with programming languages like C++ is preferred by employers in finance.
  • There is mention of specific areas of research, such as statistical mechanics and fluid dynamics, being particularly relevant due to their similarities with financial models.
  • Concerns are raised about the employment situation in academia, prompting some to consider finance as a viable alternative career path.
  • Participants discuss various literature and resources, including books by Shreve, that may be beneficial for those transitioning from physics to finance.
  • Questions arise regarding the mathematical and economic knowledge required to engage with specific finance literature, with varying responses about prerequisites.

Areas of Agreement / Disagreement

Participants express a mix of views regarding the current demand for physics PhDs in finance, with some affirming that they are still hired while others express concerns about the competitive job market. There is no consensus on the exact requirements or the best preparatory resources, as different participants suggest varying levels of mathematical and economic knowledge.

Contextual Notes

Some participants highlight the evolving nature of finance education and job availability, noting that the increase in finance programs may not correspond to a proportional increase in job opportunities. There are also differing opinions on the necessity of prior knowledge in economics for engaging with finance literature.

Who May Find This Useful

Individuals with a background in physics considering a transition to finance, particularly those interested in quantitative analysis roles, as well as current physics PhD students exploring alternative career paths.

EL
Science Advisor
Messages
557
Reaction score
0
I have seriously started considering going for a career in finance (as a "quant") after finishing my PhD in physics (theoretical astro/particle physics).

Anyone who knows what the prospects for getting good jobs in finance (Europe or US) as a physics PhD looks like today? After the "rocket scientist" boom on wall street starting something like a decade ago or so, what is the situation now? Are physicists still as sought-after?

What kind of merits are typically important in the eyes of the employers? How much knowledge in pure economics is typically required? What kind of physics knowledge is required/preferred?

Of course my above questions are very general, and I cannot expect anything but very general answers, but my hope is that someone can give some advice out of their own experience.
 
Physics news on Phys.org
What do you know? I'm doing my PhD in experimental astroparticle physics. Anyway I'll be watching this thread closely. Never hurts to have as man employment options as possible.
 
They still hire physics PhD. However it is important that you have knowledge of probability (stochastics analysis, martingales, etc) and PDEs. Also it is preferable if you know C++ and other languages. The books by streve is a very good indication of what technical skill you would need for quant.
 
Surprisingly, they also look closely at your area of research. From what I've read over at wilmott.com, statistical mechanics/fluid dynamics/brownian motion is highly sought after because of the similarities to the stock market.
 
leon1127 said:
They still hire physics PhD. However it is important that you have knowledge of probability (stochastics analysis, martingales, etc) and PDEs. Also it is preferable if you know C++ and other languages. The books by streve is a very good indication of what technical skill you would need for quant.

Good to here. Do you have personal experience from finance?
Could you (or anyone else) please provide a link to these relevant books by Streve?

If someone has more suggestions of quant litterature suitable for physicists, please let me know!
 
zhentil said:
Surprisingly, they also look closely at your area of research. From what I've read over at wilmott.com, statistical mechanics/fluid dynamics/brownian motion is highly sought after because of the similarities to the stock market.

Nice! Looks like an interesting website.
 
arunma said:
What do you know?

At the moment, not very much at all...but I have almost two years to do some reading before I'll finish my PhD!

At first I just started to think of this option simply because of the bad employment situation in the research community: it's hard to get a top, or even decent, position anywhere (and probably it will get even harder now that both US and UK are cutting down the fundings severely), and even if you do, the position is often limited in time and the sallary basically sux. On the other hand I love to do physics research, but I won't do it for whatever price. Now that I have started to look more into finance I have actually noticed I find it very interesting. There seems to be a huge amount of untouched data to analyse (e.g. from the stock markets).
 
Last edited:
EL said:
Good to here. Do you have personal experience from finance?
Could you (or anyone else) please provide a link to these relevant books by Streve?

If someone has more suggestions of quant litterature suitable for physicists, please let me know!

https://www.amazon.com/dp/0387401016/?tag=pfamazon01-20

I am actually in some computational finance programme near NY. I believe that the employment of master student in this kind of programme will be bad in next one-two years. It is because many universities are developing such programmes while there aren't as many positions for master student. For example, my university's programme triple the size from last year. PhD is not restricted to this trend because there aren't as many PhD around as Masters.
 
Last edited by a moderator:
  • #10
George Jones said:
http://latticeqcd.blogspot.com/2006/02/interview-with-matthew-nobes.html" went from a posdoc at Cornell to life as a quant.

Interesting. Thanks.
 
Last edited by a moderator:
  • #12
EL said:
What about Stochastic-Calculus-Finance-I? Do I need to read that before nr II?
Of course. One of my friends was actually accepted into the CMU program that Shreve directs. He is certainly the best-known quant finance professor in the US. Another book to check out would be Arbitrage Theory in Continuous Time, and any number of fantastic books on stochastic differential equations.
 
  • #13
Thanks for the suggested litterature. Do you have any idea of what math and economics knowledge is required to read Shreves books?

Everyone, please feel free to inform me about appropriate litterature!
 
  • #14
EL said:
Thanks for the suggested litterature. Do you have any idea of what math and economics knowledge is required to read Shreves books?

Everyone, please feel free to inform me about appropriate litterature!

They should be in your library. One is discrete time which is less relevant for your situation. Continuous time is the case when all the important probability comes into the play. You need to know calculus and probability really. No economics is required.

YOU DONT need to read 1 before reading 2. I even suggest reading 2 directly right after knowing discrete time martingale.
 

Similar threads

Admissions Direct Entry to PhD Program -- Advice Please
  • · Replies 36 ·
2
Replies
36
Views
5K
2nd BSc or MSc in physics for physics-PhD in top program in USA
  • · Replies 28 ·
Replies
28
Views
3K
Any tips for doing a PhD in theoretical physics?
  • · Replies 21 ·
Replies
21
Views
4K
Admissions Want a PhD in math, but stuck in a physics degree. What to do?
  • · Replies 4 ·
Replies
4
Views
2K
Admissions Plasma Physics PhD from an EE undergrad
  • · Replies 4 ·
Replies
4
Views
2K
Programs Electrical Engineering PhD or Applied Physics PhD?
  • · Replies 3 ·
Replies
3
Views
983
Admissions Getting into a top tier Physics PhD Program with a Masters Degree
  • · Replies 50 ·
2
Replies
50
Views
11K
Admissions Applying for Physics PhD in the UK 10 years after leaving Uni
  • · Replies 2 ·
Replies
2
Views
2K
Programs PhD in pure Maths and... Physics
  • · Replies 19 ·
Replies
19
Views
4K
Applying for a PhD in Physics after a Master's degree
  • · Replies 4 ·
Replies
4
Views
3K