The techniques of Translation Invariant (TI) denoising and statistical modeling are widely used in image denoising. This thesis studies how these techniques exploit location information in images and identifies a class of noncoherent image denoising algorithms. We analyze the performance of TI denoising from the perspective of cyclic-basis reconstruction. It shows that TI denoising achieves an average performance without direct estimation of location information. Motivated by this perspective, we propose a Redundant Quaternion Wavelet Transform (RQWT) which both avoids aliasing and separates local signal energy and location information into quaternion magnitude and phases respectively. RQWT is a natural framework for studying the statistical models in noncoherent image denoisers, because they all ignore quaternion phases. Straightforward signal estimation in the RQWT framework closely matches the state-of-the-art noncoherent image denoisers and provides a natural bound on their performance, thereby showing the importance of exploring location information in quaternion phases.