Techniques for statistical formal activity analysis with consideration of temporal and/or spatial correlations are described herein. According to one embodiment, a machine-implemented method for circuit analysis comprises unrolling a sequential circuit having a feedback loop into a plurality of unrolled circuits and introducing a spatial correlation via an encoding circuit coupled to the plurality of unrolled circuits for an activity analysis of the sequential circuit, the spatial correlation representing a dependency relationship between logic states of an input and logic states of other signals.