In this paper, we examine a multi-sensor system where each sensor may monitor more than one time-varying information process and send status updates to a remote monitor over a common channel. We consider that each sensor's status update may contain information about more than one information process in the system subject to the system's constraints. To investigate the impact of this correlation on the overall system's performance, we conduct an analysis of both the average Age of Information (AoI) and source state estimation error at the monitor. Building upon this analysis, we subsequently explore the impact of the packet arrivals, correlation probabilities, and rate of processes' state change on the system's performance. Next, we consider the case where sensors have limited sensing abilities and distribute a portion of their sensing abilities across the different processes. We optimize this distribution to minimize the total AoI of the system. Interestingly, we show that monitoring multiple processes from a single source may not always be beneficial. Our results also reveal that the optimal sensing distribution for diverse arrival rates may exhibit a rapid regime switch, rather than smooth transitions, after crossing critical system values. This highlights the importance of identifying these critical thresholds to ensure effective system performance.