1, definition and research object
Financial mathematics: Financial mathematics is a branch of applied mathematics, which mainly studies the use of mathematical models and methods to solve financial problems. It focuses on financial market pricing, risk management and portfolio optimization, and predicts and analyzes financial market, derivative product pricing and risk management through mathematical modeling and econometric analysis.
Finance: Finance is the study of how individuals, institutions or countries obtain, manage and use funds. It involves many aspects such as financial market, financial institutions, investment, financing, enterprise financial management, etc., and studies the operation law of economy and capital market from macro and micro perspectives, as well as related theoretical and practical problems.
2. Key contents
Financial mathematics: Financial mathematics focuses on mathematical modeling, quantitative analysis, probability statistics and calculation methods, which are used to solve financial problems. It emphasizes the use of mathematical tools to quantify financial risks, optimize investment portfolios, and price derivatives.
Finance: Finance covers economy, market, enterprises and individuals. It includes financial theory, financial market, financial institutions, investment decision-making, fund-raising activities, capital operation and enterprise financial management, and studies the overall operation of the financial system and related policies and practical problems.
3. Objectives and application areas
Financial Mathematics: The main goal of financial mathematics is to develop and apply mathematical models to solve quantitative problems in the financial field, such as calculating the price of financial assets, risk measurement and portfolio optimization. Its application fields include financial derivatives pricing, risk management, asset pricing, quantitative trading and so on.
Finance: The goal of finance is to explore and understand the theoretical and practical problems in capital market, enterprise financing and investment decision-making, and personal financial planning. Its application fields include investment banking, risk management, corporate financial management, capital market analysis and research, etc.
To sum up, financial mathematics mainly focuses on the application of mathematical modeling and quantitative analysis technology, while finance pays more attention to the operation, theory and practice of financial system. Although they overlap in some aspects, they study the financial field from different angles and provide different tools and methods for solving complex financial problems.
What is the difference between financial mathematics and finance in research methods?
There are some differences in research methods between financial mathematics and finance. Financial mathematics mainly focuses on the application of mathematical modeling and quantitative analysis technology, and solves financial problems by constructing mathematical models and using tools such as probability statistics and calculation methods. It focuses on using mathematical methods for accurate quantitative analysis in order to find the best solution.
Finance, on the other hand, pays more attention to the operation and practice of the whole financial system, and its research methods are more comprehensive and diversified. Finance adopts different methods to study financial phenomena and problems, including literature review, case analysis, questionnaire survey and statistical analysis.
Finance pays attention to a comprehensive understanding of the financial field from both macro and micro levels, and reveals the operating laws of financial markets and institutions through various methods.
In a word, financial mathematics emphasizes mathematical modeling and accurate calculation, while finance pays more attention to the comprehensive research method of combining theory with practice.