Correlated Linking is when you have websites or Web pages, Forums, Blogs etc. that have the same subject, or topic linking to each other.
What are the benefits of Correlated linking?
Correlated Linking has a few benefits that can determine how well that particular page or site ranks in the major Search engines on the SERP'S. Correlated Linking gives Authority, Authority is determined by Page Rank as many links point to that site or page and it lets the search engines know that the pages that are linked has to do with the same topic, therefore it must be of some importance
Page Rank can also be increased by Correlated Linking. When you have pages or sites that have authority linking to your site or page they can pass some of that Page Rank onto your page.
Where are good places to place Correlating Links?
First you want to start off by linking the pages within your site that has to do with the same subject. Make your links with the proper keywords, having the same keywords that are in the title or address of the page your are linking to is the best correlating links.
Second I would create a few blogs or find some blogs on the same subject and create links back to your pages or site. Forums are another good source as well as Social Networks. Remember when creating your backlinks to not Spam the blogs or Forums, this will surely get you banned, usually when you create a profile it allows you to add a signature, input your link there.
Bookmarking sites like Delicious and Google Bookmarks are good places and don't forget to make the bookmark's public so they can be indexed. You might want to think about answering a few questions on Yahoo answers and link back to what your referencing.
This is the basics of Correlated linking, I'm sure there are many more ways to do it, as many Internet Marketers like myself are always finding new ways of link building. hope you enjoyed the Article.