A correlation matrix is a table that shows the correlation coefficients between a set of variables. By using Excel's CORREL function, you can easily determine the correlation coefficients between each pair of variables, and create a correlation matrix to visualize these relationships.

Value at Risk (VaR) is a measure of the risk of loss for a portfolio of investments. By using Excel's NORM.INV function, investors can determine the maximum expected loss of their portfolio over a given time period, with a specified level of confidence.

Value at risk (VaR) calculations and correlation matrices are important tools used in risk management to estimate the potential losses of an investment portfolio. The VaR calculation is based on the assumption of a normal distribution of returns and takes into account the correlations between the different assets in the portfolio. By accurately estimating the potential losses and adjusting for correlations, organizations can make more informed decisions about their investments and minimize their exposure to risk.

Full Analysis done for A.O. Smith Corporation ticker symbol (AOS)