Targa Resources Correlations

TRGP Stock

USD 197.40 2.12 1.06%

The correlation of Targa Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Targa Resources Correlation With Market

Very weak diversification

The correlation between Targa Resources and DJI is 0.43 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Targa Resources and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Targa Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.

To learn how to invest in Targa Stock, please use our How to Invest in Targa Resources guide.

Moving together with Targa Stock

0.78	ET	Energy Transfer LP	Pair Corr
0.78	FLNG	FLEX LNG	Pair Corr
0.78	DHT	DHT Holdings	Pair Corr
0.76	ENB	Enbridge	Pair Corr
0.72	EPD	Enterprise Products	Pair Corr
0.8	FRO	Frontline	Pair Corr
0.71	LNG	Cheniere Energy	Pair Corr
0.81	PAA	Plains All American	Pair Corr
0.76	SMC	Summit Midstream Symbol Change	Pair Corr
0.8	WES	Western Midstream	Pair Corr
0.77	WMB	Williams Companies	Pair Corr
0.64	HESM	Hess Midstream Partners	Pair Corr
0.61	INSW	International Seaways	Pair Corr

Moving against Targa Stock

0.41	BPT	BP Prudhoe Bay	Pair Corr
0.4	MMLP	Martin Midstream Partners	Pair Corr

Related Correlations Analysis

	PAGP	DCP	ETRN	WES	ENLC	PAA	HEP	HESM	MPLX
PAGP		0.0	0.0	0.88	-0.24	1.0	0.0	0.91	0.89	PAGP
DCP	0.0		0.0	0.0	0.0	0.0	0.0	0.0	0.0	DCP
ETRN	0.0	0.0		0.0	0.0	0.0	0.0	0.0	0.0	ETRN
WES	0.88	0.0	0.0		-0.15	0.88	0.0	0.85	0.76	WES
ENLC	-0.24	0.0	0.0	-0.15		-0.24	0.0	-0.3	-0.51	ENLC
PAA	1.0	0.0	0.0	0.88	-0.24		0.0	0.9	0.87	PAA
HEP	0.0	0.0	0.0	0.0	0.0	0.0		0.0	0.0	HEP
HESM	0.91	0.0	0.0	0.85	-0.3	0.9	0.0		0.91	HESM
MPLX	0.89	0.0	0.0	0.76	-0.51	0.87	0.0	0.91		MPLX
	PAGP	DCP	ETRN	WES	ENLC	PAA	HEP	HESM	MPLX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PAA	+ 1.0	PAGP
HESM	+ 0.91	PAGP
MPLX	+ 0.91	HESM
HESM	+ 0.9	PAA
MPLX	+ 0.89	PAGP
WES	+ 0.88	PAGP

High negative correlations

MPLX	- 0.51	ENLC
HESM	- 0.3	ENLC
PAA	- 0.24	ENLC
ENLC	- 0.24	PAGP
ENLC	- 0.15	WES
MPLX	- 0.0	HEP

Risk-Adjusted Indicators

There is a big difference between Targa Stock performing well and Targa Resources Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Targa Resources' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
PAGP	1.12	0.23	0.18	0.34	1.22	(1.19)	2.42	(2.19)	9.41
DCP	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
ETRN	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
WES	1.33	0.14	0.10	0.14	1.47	(1.43)	2.77	(2.50)	7.33
ENLC	1.09	(0.04)	0.00	(0.30)	0.00	0.00	1.99	(3.17)	6.59
PAA	1.24	0.24	0.17	0.31	1.43	(1.34)	2.54	(2.69)	10.03
HEP	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
HESM	1.27	0.30	0.19	0.46	1.31	(1.26)	2.60	(2.51)	6.71
MPLX	1.12	0.22	0.19	0.25	1.11	(1.37)	2.48	(2.19)	5.75

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