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In this paper, channel estimation capabilities of a multiple-input multiple-output (MIMO) system using superimposed training sequences are investigated. A new expression for estimation-error variance is derived. It is shown that the training sequences must be balanced and must have specific correlation properties. The latter are required only in a specific zone. Sequences that satisfy these criteria exist and are referred to as zero-correlation zone (ZCZ) solutions. Consequently, by using balanced ZCZ sequences, harmful direct current (DC) offset can be removed. Owing to their zero-cross correlation, interference from other transmitting antennas may be eliminated. Furthermore, a closed-form expression of the estimation-error variance can be obtained due to their impulse-like autocorrelation. To increase the number of antennas in the MIMO system, a new construction of ZCZ sequence set is proposed, in which all sequences are balanced