Computational, theoretical or mathematical physics for finance (Quan)?

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Discussion Overview

The discussion revolves around the best path for pursuing a PhD in physics with the intention of transitioning into a career as a quantitative analyst (quant). Participants explore the relevance of computational, theoretical, and mathematical physics in relation to finance, while also considering alternative fields such as mathematics and economics.

Discussion Character

  • Debate/contested
  • Exploratory
  • Technical explanation

Main Points Raised

  • Some participants suggest that a background in mathematics and economics may be more beneficial for becoming a quant than a PhD in physics.
  • Others argue that a PhD in physics, particularly in computational physics, could provide valuable skills applicable to quantitative finance.
  • A participant mentions that computational finance involves applied physics and mathematics, highlighting the importance of strong mathematical foundations.
  • Concerns are raised about the job market for quants, with some suggesting that a PhD in physics may not lead directly to quant positions and could be seen as a fallback option.
  • Statistical physics is mentioned as a potential area of study, with some participants advocating for a focus on computational methods within theoretical physics.
  • There is uncertainty regarding the income potential for quants, particularly in different geographical regions, with participants expressing a lack of knowledge about the job market in Italy compared to New York.
  • Some participants emphasize the importance of pursuing physics for personal interest rather than solely for career prospects.

Areas of Agreement / Disagreement

Participants do not reach a consensus on the best path to becoming a quant, with multiple competing views on the relevance of physics versus mathematics and economics. The discussion remains unresolved regarding the optimal educational background for this career transition.

Contextual Notes

Participants express varying opinions on the job market and income potential for quants, indicating a lack of clarity on these topics. Additionally, there is mention of the close relationship between theoretical and computational physics, suggesting that definitions and scopes may vary among participants.

Khahan
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Hi.
My purpose is to take a phd in physics, and after few years as researcher to become a Quant.

What phd is better for this purpose: computational, theoretical or mathematical physics?

http://en.wikipedia.org/wiki/Computational_physics
 
Physics news on Phys.org
I would suggest mathematics and economics.
You do not need physics to become a quant.
Read also "The Black Swan: the impact of the highly improbable." by Nassim Nicholas Taleb.
Maybe you will change your mind.
(how stupid things may require high tech and sophisticated brains)
 
maajdl said:
I would suggest mathematics and economics.
You do not need physics to become a quant.
Read also "The Black Swan: the impact of the highly improbable." by Nassim Nicholas Taleb.
Maybe you will change your mind.
(how stupid things may require high tech and sophisticated brains)



I don't want to do physics to become a quant.
I want to do the researcher for some years, for personal interest.

But I don't want to this job for ever, just some years.


And I'm studying physics (Bachelor in EU ) not only for job, but for personal interest.

Anyway, thanks for the book.
 
There are also M.S. Degrees in computational/quantitative finance. Although as for undergrad, I think physics or applied math with maybe a minor in economics would be better than going straight economics. Computational finance is basically applied physics/math (linear algebra, partial differentiation, triple integrals, etc.) I watched a video from U of Washington and the prof said that most econ/finance majors are way behind in the math department upon entering their program.

But for a PhD in physics, quantitative finance is something that may pay the bills if you can literally find nothing else. Don't spend 7 years getting a PhD in physics just hoping to get a job as a quant.
 
esuna said:
There are also M.S. Degrees in computational/quantitative finance. Although as for undergrad, I think physics or applied math with maybe a minor in economics would be better than going straight economics. Computational finance is basically applied physics/math (linear algebra, partial differentiation, triple integrals, etc.) I watched a video from U of Washington and the prof said that most econ/finance majors are way behind in the math department upon entering their program.

But for a PhD in physics, quantitative finance is something that may pay the bills if you can literally find nothing else. Don't spend 7 years getting a PhD in physics just hoping to get a job as a quant.


I am in Italy, the PhD is 3-4 year.

Why you say "quantitative finance is something that may pay the bills"?
The income is not good?

How much it is, approximately?





PS.
What about statistical physics?
Is it better to switch from physics to quantitative finance?
 
Khahan is saying he wants to do physics because he likes it. He wants to learn it, but he recognizes (probably from other posts on this forum) that lifelong research and postdocs and the mad race isn't what he wants to do for the rest of his life. Fulfill the personal goal, then switch over to being a quant.

My advice would be computational, if only because you'll learn software and whatnot that will be able to apply to being a quant. Try to take some electives concerning math-heavy economics classes, maybe.

Also, statistical physics might be an option. I'd still do computational, but take my advice with a grain of salt.
 
Khahan said:
I am in Italy, the PhD is 3-4 year.

Why you say "quantitative finance is something that may pay the bills"?
The income is not good?

How much it is, approximately?

I honestly have no idea what kind of quant jobs there are in Italy or Europe in general. I have only researched the situation in New York.

What I meant by "quantitative finance is something that may pay the bills" is that, generally, someone who gets a PhD in physics is hoping for s job doing research. However, quantitative finance may be a valid alternative for those who can't get a research/professor position, but it probably isn't a physics PhD's first choice.

I would say no to Mathematical Physics. And then theoretical and computational are very closely related anyway. Most theoretical physics will involve some form of computation/programming. So an area that you find interesting that is theoretical and involves computational methods would be best.

You might want to read through these two threads, although they are concerned with the situation in America:
https://www.physicsforums.com/showthread.php?t=376191&highlight=quant
https://www.physicsforums.com/showthread.php?t=354287&highlight=quant



ModestyKing said:
Khahan is saying he wants to do physics because he likes it. He wants to learn it, but he recognizes (probably from other posts on this forum) that lifelong research and postdocs and the mad race isn't what he wants to do for the rest of his life. Fulfill the personal goal, then switch over to being a quant.

Yes, I realize that. Many people adopt this plan. However we're still falling into the trap of suggesting to him which branch of physics would be best to end up as a "quant." And it isn't exactly a guaranteed alternative.
 

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