This research examined correlation estimates between latent abilities when using the two-dimensional and three-dimensional compensatory and noncompensatory item response theory models. Simulation study results showed that the recovery of the latent correlation was best when the test contained 100% of simple structure items for all models and conditions. When a test measured weakly discriminated dimensions, it became harder to recover the latent correlation. Results also showed that increasing the sample size, test length, or using simpler models (i.e., two-parameter logistic rather than three-parameter logistic, compensatory rather than noncompensatory) could improve the recovery of latent correlation.