How To Fix TE259 - Triples of correlations are checked for consistency; see long text

TE259 - Overview

• Message type: E = Error

• Message class: TE - Market Risk Management

• Message number: 259

• Message text: Triples of correlations are checked for consistency; see long text

What causes this issue?

The consistency checks are performed using the algorithm shown by
<ZK>Langford, Schertmann, and Owens (2001)</>. Each set of 3
correlations is checked against the following inequation given by the
authors:
P - S <= Rho_13 <= P + S
with
P = Rho_12 * Rho_23
S = SQRT( ( 1 - (Rho_12)^<ZG>2</> )*( 1 - (Rho_23)^2 ) )
Rho_12 denotes the correlation between the first and the second risk
factor. Rho_13 and Rho_23 are defined accordingly.

System Response

Inconsistent correlations might cause the Cholesky decomposition to
fail.

How to fix this error?

Please consider adjusting the correlations.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

TE259 - Details

• The SAP error message TE259 indicates that there is an inconsistency in the triples of correlations in the context of the SAP system, particularly in the area of controlling (CO) or profitability analysis (CO-PA). This error typically arises during the execution of certain transactions or reports that involve data consistency checks.
  
  Cause:
  The error can be caused by several factors, including:
  
  Data Inconsistency: There may be inconsistencies in the underlying data, such as missing or incorrect entries in the database tables that store correlation data.
  
  Configuration Issues: Incorrect configuration settings in the controlling area or profitability analysis settings can lead to this error.
  Master Data Issues: Problems with master data, such as missing or incorrect characteristics in the master data records, can also trigger this error.
  Data Migration Issues: If data has been migrated from another system or if there have been recent changes to the data model, inconsistencies may arise.
  
  
  Solution:
  To resolve the TE259 error, you