A method for generating compressed correlation key values for use in correlating alarms generated by network elements in a telecommunications network is disclosed. An alarm message generated by a network element is received. A context value in the alarm message is identified. A table that associates context values to correlation key value formulas is maintained. A formula specifying how to generate the correlation key value is retrieved from the table. Each formula may specify, for an associated context value, one or more ordinal positions of fields in the alarm message, a concatenation of which yields the correlation key value. The correlation key value is created based on the formula. A unique ordinal number is generated to represent the correlation key value, which acts as a context key. The alarm message and correlation key value are sent to an external system for use in correlating alarms.