PEO vs TRGP: Correlation
How closely do Adams Natural Resources Fund, Inc. (PEO) and Targa Resources (TRGP) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PEO and TRGP?
On 3 years of weekly data the PEO/TRGP correlation comes out at 0.72, strong. Recent behaviour matches the longer record: 0.69 over 1 year against 0.72 over 3. The 5-year figure is 0.78, and annualized covariance runs at 456.1 %².
Among the 42 assets we track against PEO, TRGP ranks #17 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TRGP outperformed by 37.1 percentage points (+41.6% for PEO against +78.7% for TRGP). One caveat on sizing: TRGP is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
PEO vs TRGP: side by side
| PEO (Adams Natural Resources Fund, Inc.) | TRGP (Targa Resources) | |
|---|---|---|
| 1-year return | +41.6% | +78.7% |
| 5-year return | +179.3% | +626.8% |
| Volatility (ann.) | 20.2% | 31.5% |
| Beta vs S&P 500 | 0.30 | 0.44 |
| Max drawdown (3Y) | -18.9% | -31.6% |
| Market cap | $0.8B | $62.0B |
| P/E (trailing) | 4.8 | 28.1 |
| Dividend yield | 7.09% | 1.53% |
| Sector / category | US Listed | Energy |
Year-by-year returns
| Year | PEO | TRGP |
|---|---|---|
| 2022 | +41.8% | +43.7% |
| 2023 | +0.9% | +21.0% |
| 2024 | +13.6% | +110.1% |
| 2025 | +10.0% | +5.7% |
| 2026 | +38.5% | +58.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PEO and TRGP good diversifiers for each other?
Only partially. A correlation of 0.72 means PEO 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 PEO and TRGP?
As of 2026-08-27, the correlation of weekly returns between PEO and TRGP is 0.72 over 3 years, 0.69 over 1 year and 0.78 over 5 years.
Is TRGP a good diversifier for PEO?
Only partially. A correlation of 0.72 means PEO 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?
On the −1 to +1 scale, 0.72 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: PEO correlations · TRGP correlations
