Statistics PhDs - Quant Job Market

[revbayes]

Hi guys,



This is my first post at this forum, but I have been reading it, as well as a few others, for some time and I haven't found a direct answer to this question.  I am curious specifically about the job prospects in finance for someone with a PhD is statistics, focused mainly on bayesian statistics and machine learning involving geometry.  I have read that a statistics PhD is a good fit for algorithmic trading, stat arb, and trading in general but not as applicable to the more traditional quant pricing roles or anything involving exotic products which typically goes to the math/physics guys.  This gives the impression that there are very exciting jobs out there for people with a stats background, but I have also heard that it is much more difficult to find a job in the stat arb type jobs.  Is this true?  If so, then it seems like there are more jobs out there in finance requiring an applied math background, and consequently more job security. 



 



Also, I was curious, would someone with a degree in statistics who did a good amount of work with PDEs and probability theory in the math department be considered for those more traditional pricing or exotic product roles?  Not being in the industry, it is hard for me to get a feel for this.  So many of the job ads ask for a degree in math, physics, or engineering and I'm not sure if stats would be included.  Thanks for all of your help, and I hope that someday I will be here answering questions rather than just asking them

[JoeC]

For a firm to be looking for a PhD in Math, Physics, or Engineering has much to do with an interest in people with a proven ability to solve large complex problems - that somebody hasn't solved before - problem that require deep math skills. Where they would see the optimal point of entry for somebody with a PhD in Fluid Dynamics would be quite different than where they would start somebody with a degree in Statistics or Probability.



By name alone a PhD in Statistics would fit well into a Stat Arb strategy (or Index, or FX Arb, for that matter). Volitility Trading as well.



For role as  Fundamental Trader firms more often look for backgrounds in Economics/Finance. Though not to say deep knowledge of Statistics is a bad thing - it just isnt' market knowledge walking in the door.



It's half an answer --- I'm sure somebody will step up and answer the rest of the question

[revbayes]

Thanks a lot for the response JoeC.  I see what you mean about the skill set of someone with a background in statistics being different from someone with a background in fluid dynamics.  I guess my curiousity involves you saying that PhDs in Math, Physics, and Engineering are typically used to solve complex problems involving deep math skills.  It seems that stats PhDs run the gamut from very little math background to those doing more theoretical research in probability that have similar backgrounds to someone studying probability in a math department.  For instance, a friend of mine (I promise I'm not actually talking about myself , although I am working towards a similar background) is in a stats program but he has taken all of the courses the math department offers on PDEs, has done research involving SDEs, and is more of a probabilist than a statistician.  I am curious, would someone with this background coming from a stats department have similar job opportunities to someone with this background coming from a math department?



Also, I have read that it is important to get internship experience before you graduate so that you understand the industry better and to help get your foot in the door.  I know that there are a few headhunters that check this forum, but I don't know if any of you place people in internships.  Would any of you be willing to talk to me to see if you think I would be a good fit somewhere, or to give me advice about how to make myself a more attractive applicant?  Thanks for all of your help guys.