I am studying matrix diagonalization and I have a few doubts. We know that a matrix $A$ is diagonalizable if there exists an invertible matrix $C$ and a diagonal matrix $D$ such that $A = CDC^{-1}$ is diagonal. Does $A=C^{-1}DC$ also hold true? I've done a few calculations and it seems like so but would like confirmation.
To find $D$, I first find $C$ with the diagonalization method. Then, $D=CAC^{-1}$. After I find $D$, then: $A=CDC^{-1}$. Am I missing something? Any hints would be appreciated.
You have a linear transformation $T$. In one basis (which I will call $a$) this linear transformation is represented by the matrix $A$. In a different basis (which I will call $d$), the same linear transformation is represented by $D$.
The matrix $C$ takes the components of any vector as expressed in one of these bases and translates it to the other base. Sandwitching a matrix (representing some linear transformation) between $C$ and $C^{-1}$ will take the components of that matrix and translate that to the matrix that represents the same linear transformation in the other base.
When you write $A = CDC^{-1}$, then that means that you have chosen $C$ to be the matrix that takes in the components of vectors expressed in $d$ and spits out the components of vectors expressed in $a$. When you write $A = C^{-1}DC$, then that means that you have chosen $C$ to be matrix that takes in vectors expressed in $a$ and spits out vectors expressed in $d$. These are different $C$'s and should never be used in the same context the way I have done in this paragraph. You have to make a single choice and then stick with it.
Usually, when diagonalizing, it is most immediate and therefore most convenient to choose $C$ so that its columns are the eigenvectors of $T$, expressed in the basis $a$ (the so-called "eigenvectors of $A$"). This means that we happen to go with the first option above. This means that $A = CDC^{-1}$. Note that this also means $$ A = CDC^{-1}\\ AC = CDC^{-1}C\\ AC = CD\\ C^{-1}AC = C^{-1}CD = D $$ so that we have $D = C^{-1}AC$, not the other way around.