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The correlated frequency diversity may be used in future mobile communication to maintain both the spectral efficiency and the reliabilities. In this paper, a new method of analyzing system performance for correlated frequency diversity is proposed. As for the correlated frequency diversity, the correlation exists not only between carriers, but also the fading envelope corresponding to different carriers. In our method, after a serial of transformations, the correlated fading can be converted into independent Rayleigh fading, which means it is simple to obtain the system performance. In this paper, this method is investigated based on the MRC (maximal ratio combining) reception at the receiver. The analysis and simulation results prove the effectiveness and simpleness of this proposed method.