For documentation I tried several configurations and found one that seems to work well:
Pseudocode:
Raw counts ->
logNormCounts (log normalize with scran) ->
Select common variable features between datasets (similar to seurat find anchors) among top 3000-5000 genes ->
PCA using prcomp function (possibly removing batch associated PCs?) ->
spearman correlation between cells on first 50-100 PCs
Pearson correlation gives weight to the outlier PCs which could be a problem if one PC is due to technical noise. I also considered the option of pooling cells for more robust Correlations, however, pooling itself requires a distance metric, and PCA acts as a noise reduction method