  We introduce an explicit definition for 'hidden correlations' on individual
entities in a compound system: when one individual entity is measured, this
induces a well-defined transition of the 'proper state' of the other individual
entities. We prove that every compound quantum system described in the tensor
product of a finite number of Hilbert spaces can be uniquely represented as a
collection of individual(ized) (peudo-)entities between which there exist such
hidden correlations. We investigate the significance of these hidden
correlation representations within the so-called
``creation-discovery-approach'' and in particular their compatibility with the
``hidden measurement formalism''. This leads us to the introduction of the
notions of 'soft' and 'hard' 'acts of creation' and to the observation that our
approach can be seen as a theory of (pseudo-)individuals when compared to the
standard quantum theory. (For a presentation of the ideas proposed in this
paper within a quantum logical setting, yielding a structural theorem for the
representation of a compound quantum system in terms of the Hilbert space
tensor product, we refer to quant-ph/0008054.)
