Ever wondered how a correlation matrix can help with data modeling and prediction? In this video, we break it all down using a fun, hypothetical dataset to highlight key concepts like spotting duplicates, identifying strong predictors, and reducing multicollinearity in regression models. Plus we will show you how to create the correlation matrix from the covariance matrix etc.
✅ Learn why correlation beats covariance for comparing variables
✅ Understand how using correlations will help you understand data before doing linear regressions
✅ Follow along as we build the matrix step-by-step in Excel—formula and all!
Whether you're new to data analysis or brushing up on your Excel modeling skills, this walkthrough is designed to make complex ideas simple and practical.
For the files used in this video, please visit:
https://manilafinance.com/matrix-operations-basics/