Top Books for Learning Finance Quantitatively with a Mathematics and Physics Background

Delving into finance with a strong mathematical and physics background opens the door to a vast array of quantitative finance topics. This article provides a guide to the best books available, tailored for those with a solid foundation in mathematics and physics, along with papers and resources for further learning.

Textbooks

1. Quantitative Risk Management: Concepts, Techniques, and Tools (Princeton Series in Finance)
Authors: Alexander J. McNeil, Rüdiger Frey, Paul Embrechts
This book is an essential read for anyone interested in risk management. It offers a comprehensive overview of the concepts and techniques used in quantitative risk management, making it a valuable resource for your studies.

2. An Introduction to Quantitative Finance
Author: Stephen Blyth
This book is well-suited for beginners with a strong mathematical background who wish to understand the fundamentals of quantitative finance. It covers a wide range of topics and provides a solid foundation for advanced studies.

3. Finance: A Quantitative Introduction
Author: Nico van der Wijst
This book is designed for readers with a background in mathematics and physics. It delves into the quantitative methods used in finance, offering a detailed introduction to various financial models and tools.

4. Extreme Financial Risks: A Practical Guide to Concepts, Theory, and Applications (Series in Quantitative Finance)
Authors: Olivier Le Courtois, Christian Walter
This book focuses on the practical aspects of extreme financial risks, providing insights into risk management techniques and asset allocation strategies. It is ideal for those interested in both theory and application.

5. Quantitative Trading with R: Understanding Mathematical and Computational Tools from a Quant’s Perspective
Author: Harry Georgakopoulos
If you're looking to apply your mathematical skills to quantitative trading, this book is a must-read. It covers mathematical and computational tools, providing practical guidance and real-world examples.

6. Quantitative Methods for Finance
Author: Terry Watsham with Keith Parramore
This book provides a practical introduction to quantitative methods in finance, covering essential topics such as econometrics, risk management, and derivatives pricing. It is perfect for those who want to apply their mathematical skills to financial analysis.

Recommended Resources

Working on your coursework is crucial, but so is staying informed about the latest developments in the field. Here are some additional resources:

Corporate Finance Global Edition: The Core - Third Edition
Author: Berk, J. DeMarzo, P.
This textbook is currently used in the Finm2401 class at the University of Queensland. It is a useful introduction to corporate finance, accessible for those without prior finance studies.

Algorithmic Trading, Quantitative Trading, Trading Strategies, Backtesting, and Implementation
This book is highly recommended for those interested in the practical aspects of algorithmic trading. It covers advanced topics such as trading strategies, backtesting, and implementation from a quantitative perspective.

Papers and Academic Resources

While books are a great starting point, many of the most valuable information in quantitative finance comes from academic papers. Here are some suggestions:

1. The Accruals Anomaly
Look for the Richard Sloan paper on this topic. It provides deep insights into the accruals anomaly, a critical concept in quantitative finance.

2. FAJ Financial Analyst Journal
This monthly magazine is dedicated to finance analysis and offers a wealth of knowledge. It's moving towards an online-only format, making it even more accessible.

3. SSRN (Social Science Research Network)
This site hosts academic papers on a wide range of topics, including finance. It's an excellent resource for staying informed about the latest research and developments in quantitative finance.

4. Paul Wilmott's Books
Paul Wilmott has written several influential books on quantitative finance and trading. Many of these are available for free online, including his book Algorithmic Trading, Quantitative Trading, Trading Strategies, Backtesting, and Implementation.

5. The Encyclopedia of Quantitative Trading Strategies
This site offers a wealth of free information on quantitative trading strategies, making it a valuable resource for both students and professionals.

Conclusion

Your background in mathematics and physics provides a strong foundation for learning finance quantitatively. By combining these resources with your academic coursework, you can gain a deep understanding of the field and position yourself for a successful career in finance.