  A density matrix formulation of classical bipartite correlations is
constructed. This leads to an understanding of the appearance of classical
statistical correlations intertwined with the quantum correlations as well as a
physical underpinning of these correlations. As a byproduct of this analysis, a
physical basis of the classical statistical correlations leading to additive
entropy in a bipartite system discussed recently by Tsallis et al emerges as
inherent classical spin fluctuations. It is found that in this example, the
quantum correlations shrink the region of additivity in phase space.
