Correlation analysis: Generating correlation matrix between many variables in Excel

In previous post about regression analysis we talked about Data analysis Pak in Excel. This can be used to calculate correlation between n number of variables. The process is simple:

From tools, click data analysis, then select correlation.

Now we need to specify the input range and output range (may be new worksheet or workbook or a region where the correlation matrix will be pasted ). 

Sometime you might want to see the matrix as heatmap, you can conditionally color the matrix, so that you can identify high and low correlation, just to make sense.