for eg, a 5 % VAR of $1,000 over the next week means that, given the standard deviation and distribution of returns for the asset, management can say there is a 5% probability that the asset will lose a minimum of (at least) $1,000 over the coming week. Stated differently, management is 95% confident the loss will be no greater than $1,000
for the same 5% VAR (95% degree of confidence)
5% chance of a loss > $1,000
95% confident loss < $1,000
woah i wanted to aska qn, but as i was typing it out i see the connection!