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Spatial correlation is one of the impairments in multiple- input multiple-output (MIMO) wireless communication systems. Capacity increases promised by MIMO systems mostly depend on the spatial correlation properties of the radio channels. This letter investigates the connection between these properties and the channel capacity. An analytical formula is derived for the fading correlation function of a uniform circular array (UCA) when the angular energy follows a Laplacian distribution. Computer simulations are carried out to verify the analytical results, such as fading correlation and channel capacity.