Finding meaningful phrases in a document has been studied in various information retrieval systems in order to improve the performance. Many previous statistical phrase-finding methods had a different aim such as document classification. Some are hybridized with statistical and syntactic grammatical methods; others use correlation heuristics between words. We propose a new phrase-finding algorithm that adds correlated words one by one to the phrases found in the previous stage, maintaining high correlation within a phrase. Our results indicate that our algorithm finds more meaningful phrases than an existing algorithm. Furthermore, the previous algorithm could be improved by applying different correlation functions.