Quantitative trading refers to the use of advanced mathematical models instead of artificial subjective judgments, and the use of computer technology to select a variety of "high probability" events that can bring excess returns to formulate strategies, which greatly reduces the impact of investors' emotional fluctuations and avoids making irrational investment decisions under extremely enthusiastic or pessimistic market conditions.

Quantitative investment and traditional qualitative investment are essentially the same, both of which are based on the theory of inefficient or weakly efficient market. The difference between the two is that quantitative investment management is a "quantitative application of qualitative thinking", with more emphasis on data.

Extended data:

First, find out several pairs of investment products with the best correlation, and then find out the long-term equilibrium relationship (cointegration relationship) of each pair of investment products. When the price difference (residual of cointegration equation) of a pair of varieties deviates to a certain extent, they start to open positions, buy relatively undervalued varieties and short relatively overvalued varieties, and take profits after the price difference returns to equilibrium.

Hedging of stock index futures is a common operating strategy in statistical arbitrage, that is, using the index correlation of different countries, regions or industries to buy and sell a pair of index futures at the same time.

Under the condition of economic globalization, the correlation of stock indexes in various countries, regions and industries is getting stronger and stronger, which easily leads to systematic risks of stock indexes. Therefore, the statistical arbitrage between hedge indexes is a low-risk and high-yield trading method.