RY325 - Covariance matrix is not positively definite

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SAP Error Message - Details

  • Message type: E = Error

  • Message class: RY - Messages for RM Basis

  • Message number: 325

  • Message text: Covariance matrix is not positively definite

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  • What causes this issue?

    The covariance matrix is not positively definite. Consequently, no
    Choleskyanalysis of the covariance matrix can be performed. The
    calculated VaRs are only applied conditionally.

    System Response

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

    How to fix this error?

    Align variances and covariances in such a way so that the covariance
    matrix is positively definite. Alternatively,
    use an external Monte Carlo calculator (user exit level 1) to split up
    the covariance matrix with the single value analysis. (The algorithm for
    the single value analysis of a matrix cannot be applied in the case of
    non-positively defined matrices.)

    Error message extract from SAP system. Copyright SAP SE.


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