TPL vs TRGP: Correlation
Texas Pacific Land Corporation (TPL) and Targa Resources (TRGP) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TPL and TRGP?
Over the past 3 years, TPL and TRGP moved with a correlation of 0.53, which is moderate. The relationship has been stable: the 1-year correlation (0.44) sits close to the 3-year figure. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 832.0 %².
TRGP is one of the assets that tracks TPL most closely: it ranks #3 out of the 29 assets we track against TPL. Their recent paths diverged sharply: over the last 12 months TRGP outperformed by 55.9 percentage points (+22.8% for TPL against +78.7% for TRGP). On a rolling one-year basis the correlation drifted between 0.33 and 0.68, a moderate band. One caveat on sizing: TPL 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.
TPL vs TRGP: side by side
| TPL (Texas Pacific Land Corporation) | TRGP (Targa Resources) | |
|---|---|---|
| 1-year return | +22.8% | +78.7% |
| 5-year return | +149.6% | +626.8% |
| Volatility (ann.) | 50.0% | 31.5% |
| Beta vs S&P 500 | 0.62 | 0.44 |
| Max drawdown (3Y) | -52.2% | -31.6% |
| Market cap | $25.5B | $62.0B |
| P/E (trailing) | 47.2 | 28.1 |
| Dividend yield | 0.61% | 1.53% |
| Sector / category | Energy | Energy |
Year-by-year returns
| Year | TPL | TRGP |
|---|---|---|
| 2022 | +91.3% | +43.7% |
| 2023 | -32.4% | +21.0% |
| 2024 | +115.3% | +110.1% |
| 2025 | -21.6% | +5.7% |
| 2026 | +29.1% | +58.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TPL and TRGP good diversifiers for each other?
Only partially. A correlation of 0.53 means TPL 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 TPL and TRGP?
The TPL/TRGP correlation stands at 0.53 on a 3-year window (1 year: 0.44, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is TRGP a good diversifier for TPL?
Only partially. A correlation of 0.53 means TPL 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 0.53 mean?
A reading of 0.53 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: TPL correlations · TRGP correlations
