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We propose a three-dimensional (3D) polarized MIMO channel model, which takes into account 3D power angular spectrum and comprehensive propagation characteristics of electromagnetic waves excited by polarized antennas. Based on the model, we derive a close form expression of the spatial correlation as a function of the physical parameters representing both characteristics of arbitrary antennas and propagation environment in 3D space. The spatial correlation expression allows to use the Von Mises Fisher (VMF) distribution, resulting in a more accurate and general channel model. Through simulation, we evaluate and compare performance, in terms of the spatial correlation and capacity, of 2 × 2 MIMO configurations with different polarizations, i.e., V/V, V/H, and slanted ±45° polarizations, as a function of critical input parameters including elevation angle, antenna orientation, antenna spacing, cross-polarization discrimination (XPD), and signal-to-noise ratio (SNR). The effect of the parameters on the performance is analyzed, and verified in certain cases through the literature.