Employing quantum kinetic equations we study the formation of binary c
orrelations in plasma at short time scales. It is shown that this form
ation is much faster than dissipation due to collisions, and in hot (d
ense) plasma the correlations form on the timescale of inverse plasma
frequency (Fermi energy). This hierarchy of characteristic times is us
ed to derive analytical formulae for the time dependence of the potent
ial energy of binary interactions which measures the extent of correla
tions. We discuss the dynamical formation of screening and compare thi
s with the static screened result. Comparisons are made with molecular
dynamic simulations. In the low temperature limit we find an analytic
al expression for the formation of correlation which is general for an
y binary interaction. It can be applied in nuclear situations as well
as for dense metals. (C) 1998 Elsevier Science B.V.