Correlation – what it is, why it’s important, how to estimate it, how to implement

Correlation is a critical component of a risk analysis model in any field. Failure to correctly model the correlation between uncertain variables will give misleading, and sometimes dangerously wrong, results yet it receives very little attention. Most risk analysis software products provide only the most basic correlation tools. ModelRisk is very different. This short demo explains the correlation tools available in ModelRisk, how they work, and why they can make all the difference to your risk analysis.

About ModelRisk:
ModelRisk is the pre-eminent risk analysis tool for business, science, engineering and government. ModelRisk fully integrates with Microsoft Excel, automating Monte Carlo simulation in your Excel models so you can fully understand the risk and uncertainty involved in key decisions. ModelRisk uses simulation techniques to compare different decision options so you can select the ones that are most likely to succeed, and develop the most-cost effective strategy for reducing risk.

About Vose Software:
Vose Software designs, develops, sells and supports a range of quantitative risk analysis software. The products can be used independently to address specific risk issues, or integrated to provide a complete corporate risk management platform.