In this work, we study quantum correlations in mixed states. The states studied are modeled by a two-qubit system interacting with its environment via a quantum non de-molition (purely dephasing) as well as dissipative type of interaction. The entanglement dynamics of this two qubit system is analyzed. We make a comparative study of various measures of quantum correlations, like Concurrence, Bell's inequality, Discord and Tele-portation fidelity, on these states, generated by the above evolutions. We classify these evoluted states on basis of various dynamical parameters like bath squeezing parameter r, inter-qubit spacing r12, temperature T and time of system-bath evolution t. In this study, in addition we report the existence of entangled states which do not violate Bell's inequality, but can still be useful as a potential resource for teleportation. Moreover we study the dynamics of quantum as well as classical correlation in presence of dissipative coherence. © Rinton Press.