We compare the performance of a quantum radar based on two-mode squeezed states with a classical radar system based on correlated thermal noise. With a constraint of equal number of photons NS transmitted to probe the environment, we find that the quantum setup exhibits an advantage with respect to its classical counterpart of √2 in the cross-mode correlations. Amplification of the signal and the idler is considered at different stages of the protocol, showing that no quantum advantage is achievable when a large-enough gain is applied, even when quantum-limited amplifiers are available. We also characterize the minimal type-II error probability decay, given a constraint on the type-I error probability, and find that the optimal decay rate of the type-II error probability in the quantum setup is ln(1 + 1/N S) larger than the optimal classical setup, in the NS« 1 regime. In addition, we consider the Receiver Operating Characteristic (ROC) curves for the scenario when the idler and the received signal are measured separately, showing that no quantum advantage is present in this case. Our work characterizes the trade-off between quantum correlations and noise in quantum radar systems.