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Evidence reasoning (ER) combined with dimensionless index method can be used in rotating machinery fault diagnosis. In ER algorithm, reliability is mainly obtained in two ways: distance-based method and correlation measure by set theory. In practice, the distance-based method cannot generate high-discrimination reliability in high-coincidence data like dimensionless index data. Therefore, correlation measure by set theory method is used in fault diagnosis more frequently. Because correlation measure by set theory only considers upper bound and lower bound of fault data, we add a regularization term to calculate the relationship between the inner data. Experience result shows that fault diagnosis accuracy had improved, which illustrates that the new reliability can describe data relationship better. [ABSTRACT FROM AUTHOR]