Top Quantitative Finance Interview Questions at Radix Trading
Quantitative finance interviews at elite prop trading firms like Radix Trading, Sun Trading, Seamless Capital, Tanius Technology, and Huatai Securities are renowned for their rigor. Candidates are challenged not just on technical skills but also on their ability to explain concepts, derive results, and apply quantitative reasoning to real-world problems. In this article, we dive deep into actual quant interview questions from these firms, providing detailed derivations, explanations, and even code samples to help you master the core concepts.
Least squares regression is a fundamental statistical method used to model the relationship between a dependent variable \( y \) and one or more independent variables \( X \). The goal is to find the best-fitting linear relationship by minimizing the sum of squared residuals.
Consider a set of observations: \[ \{(x_1, y_1), (x_2, y_2), \ldots, (x_n, y_n)\} \] Assume a simple linear model: \[ y_i = \beta_0 + \beta_1 x_i + \epsilon_i \] where \( \epsilon_i \) is the error term.
