In this paper we address the potential gain of using compact MIMO antenna array configurations in conjunction with satellite diversity techniques in order to increase the data rates in satellite communication systems. We will also investigate the effects of separation angles between satellites and the spatial correlation and mutual coupling between the separate antenna elements on system performance. Simulation results show that although the capacity is degraded by correlation and mutual coupling, we still achieve significant capacity gain compared to the single satellite case. Simulations also show the existence of an optimum separation angle between satellites that maximizes capacity.