MGY vs TRGP: Correlation
Magnolia Oil & Gas Corporation (MGY) and Targa Resources (TRGP) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MGY and TRGP?
On 3 years of weekly data the MGY/TRGP correlation comes out at 0.72, strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. The 5-year figure is 0.74, and annualized covariance runs at 719.3 %².
Within MGY's tracked universe of 28 assets, TRGP comes in at #15 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TRGP outperformed by 68.1 percentage points (+10.6% for MGY against +78.7% for TRGP).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
MGY vs TRGP: side by side
| MGY (Magnolia Oil & Gas Corporation) | TRGP (Targa Resources) | |
|---|---|---|
| 1-year return | +10.6% | +78.7% |
| 5-year return | +92.1% | +626.8% |
| Volatility (ann.) | 32.0% | 31.5% |
| Beta vs S&P 500 | 0.40 | 0.44 |
| Max drawdown (3Y) | -31.5% | -31.6% |
| Market cap | $6.5B | $62.0B |
| P/E (trailing) | 11.5 | 28.1 |
| Dividend yield | 2.50% | 1.53% |
| Sector / category | US Listed | Energy |
Year-by-year returns
| Year | MGY | TRGP |
|---|---|---|
| 2022 | +26.5% | +43.7% |
| 2023 | -7.3% | +21.0% |
| 2024 | +12.2% | +110.1% |
| 2025 | -3.8% | +5.7% |
| 2026 | +24.1% | +58.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MGY and TRGP good diversifiers for each other?
Only partially. A correlation of 0.72 means MGY and TRGP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MGY and TRGP?
As of 2026-08-27, the correlation of weekly returns between MGY and TRGP is 0.72 over 3 years, 0.68 over 1 year and 0.74 over 5 years.
Is TRGP a good diversifier for MGY?
Only partially. A correlation of 0.72 means MGY and TRGP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
A reading of 0.72 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: MGY correlations · TRGP correlations
