With the growing complexity in computer systems, it has been a real challenge to detect and diagnose problems in today’s large-scale distributed systems. Usually, the correlations between measurements collected across the distributed system contain rich information about the system behaviors, and thus a reasonable model to describe such correlations is crucially important in detecting and locating system problems. In this paper, we propose a transition probability model based on markov properties to characterize pairwise measurement correlations. The proposed method can discover both the spatial (across system measurements) and temporal (across observation time) correlations, and thus such a model can successfully represent the system normal profiles. Problem determination and localization under this framework is fast and convenient. The framework is general enough to discover any types of correlations (e.g. linear or non-linear). Also, model updating, system problem detection and ...