There are two different paradigms for computing correlation. The first one is called auto-correlation, which is what this systemwhere you are comparing a signal with shifted time offsets of itself. This paradigm that we are describing (also seen in the figure) is doingdefined as cross-correlation, where we are comparing with another signal, notably the received signal. We essentially are comparing the signal we have received signal with shifted versions of the original transmitted signal. Basically, we take a look at what we have received and what was transmitted. We take what was received, and time shift the original transmitted signal over by different time values. We then do a comparison with each of these signals and the received result. Whichever gives us the highest value will denote how far away the helicopter is.
The second one is called cross-correlation, where instead of using shifted versions of the transmitted signal, you have another signal that you want to compare to.