ADR Quant Interview Guide
ADR quant interview guide for cross-listed exposure, local shares, ratios, currency effects, trading hours, liquidity, and risks.
Candidates discussing cross-market equity exposure and data alignment.
ADRs represent foreign equity exposure
An ADR can represent a specified number of local shares and trades in another market. The relationship involves ratios, currency, timing, and liquidity.
Prices are linked but not identical
The ADR and local share can diverge because of FX moves, trading hours, conversion frictions, fees, taxes, or market access constraints.
Concrete example
If the local market closes before the ADR, the ADR may incorporate new information while the local share price remains stale until its market reopens.
Data normalization matters
Compare ADR and local shares only after aligning ratios, currency, timestamps, corporate actions, and venue liquidity assumptions.
Common mistakes
Candidates often compare raw prices directly. Strong answers convert units and currency, then discuss timing and execution constraints.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.