How do you calculate variance covariance matrix for daily market prices of stock in excel?

To calculate the variance-covariance matrix for daily market prices of stocks in Excel, first, gather the daily prices of the stocks in a spreadsheet. Convert these prices into daily returns by using the formula: ( \text{Return} = \frac{\text{Price Today} - \text{Price Yesterday}}{\text{Price Yesterday}} ) for each stock. Once you have the daily returns, use the Excel function =COVARIANCE.P(array1, array2) to calculate the covariances between each pair of stock returns, and =VAR.P(array) for the variances of individual stock returns. Finally, organize these values into a matrix format to represent the variance-covariance matrix.