Magnolia Oil Correlations

MGY Stock

USD 22.89 0.25 1.08%

The current 90-days correlation between Magnolia Oil Gas and SM Energy Co is 0.89 (i.e., Very poor diversification). The correlation of Magnolia Oil 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.

Magnolia Oil Correlation With Market

Very weak diversification

The correlation between Magnolia Oil Gas and DJI is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Magnolia Oil Gas and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Magnolia Oil Gas. 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.

Moving together with Magnolia Stock

0.84	PR	Permian Resources	Pair Corr
0.91	SM	SM Energy	Pair Corr
0.72	VTLE	Vital Energy	Pair Corr
0.88	BSM	Black Stone Minerals	Pair Corr
0.68	CNX	CNX Resources Corp Fiscal Year End 23rd of January 2025	Pair Corr
0.71	COP	ConocoPhillips Sell-off Trend	Pair Corr
0.8	CRC	California Resources Corp	Pair Corr
0.89	EOG	EOG Resources	Pair Corr
0.84	EPM	Evolution Petroleum	Pair Corr
0.88	HES	Hess	Pair Corr
0.8	KRP	Kimbell Royalty Partners	Pair Corr

Moving against Magnolia Stock

0.63

MRO

Marathon Oil

Pair Corr

Related Correlations Analysis

	SM	CIVI	RRC	CPE	MTDR	HES	MRO	CHRD	ESTE	PDCE
SM		0.75	0.22	-0.26	0.5	0.74	-0.77	0.71	-0.46	-0.23	SM
CIVI	0.75		-0.19	-0.33	0.06	0.35	-0.56	0.97	-0.52	-0.56	CIVI
RRC	0.22	-0.19		0.54	0.9	0.64	-0.11	-0.29	0.55	0.58	RRC
CPE	-0.26	-0.33	0.54		0.46	0.15	0.3	-0.4	0.84	0.7	CPE
MTDR	0.5	0.06	0.9	0.46		0.81	-0.27	-0.06	0.34	0.51	MTDR
HES	0.74	0.35	0.64	0.15	0.81		-0.46	0.26	0.01	0.23	HES
MRO	-0.77	-0.56	-0.11	0.3	-0.27	-0.46		-0.54	0.39	0.27	MRO
CHRD	0.71	0.97	-0.29	-0.4	-0.06	0.26	-0.54		-0.59	-0.63	CHRD
ESTE	-0.46	-0.52	0.55	0.84	0.34	0.01	0.39	-0.59		0.57	ESTE
PDCE	-0.23	-0.56	0.58	0.7	0.51	0.23	0.27	-0.63	0.57		PDCE
	SM	CIVI	RRC	CPE	MTDR	HES	MRO	CHRD	ESTE	PDCE

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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

CHRD	+ 0.97	CIVI
MTDR	+ 0.9	RRC
ESTE	+ 0.84	CPE
HES	+ 0.81	MTDR
CIVI	+ 0.75	SM
HES	+ 0.74	SM

High negative correlations

MRO	- 0.77	SM
PDCE	- 0.63	CHRD
ESTE	- 0.59	CHRD
PDCE	- 0.56	CIVI
MRO	- 0.56	CIVI
CHRD	- 0.54	MRO

Risk-Adjusted Indicators

There is a big difference between Magnolia Stock performing well and Magnolia Oil 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 Magnolia Oil's 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
SM	1.95	(0.18)	0.00	(0.18)	0.00	0.00	3.42	(4.43)	13.00
CIVI	1.68	(0.36)	0.00	(0.39)	0.00	0.00	3.10	(3.79)	11.48
RRC	1.48	0.12	0.07	0.16	1.62	(1.58)	4.31	(2.66)	10.24
CPE	2.33	0.03	0.00	0.20	3.03	(2.30)	4.32	(5.23)	12.38
MTDR	1.80	0.03	0.01	0.05	2.42	(1.81)	3.24	(4.08)	12.94
HES	0.95	(0.07)	0.00	(0.10)	0.00	0.00	2.25	(2.47)	5.93
MRO	1.28	0.06	0.02	(2.63)	1.57	(1.35)	2.64	(3.27)	7.72
CHRD	1.36	(0.31)	0.00	(0.42)	0.00	0.00	2.39	(3.71)	8.25
ESTE	2.25	0.15	0.05	(1.49)	2.66	(2.41)	4.37	(4.80)	10.76
PDCE	1.42	0.20	0.10	4.22	1.64	(1.51)	2.84	(2.49)	9.74

Magnolia Oil Corporate Management

James Larson	Independent Director	Profile
Tom Fitter	Investor Executive	Profile
John Walker	Director	Profile
Brian CPA	CFO VP	Profile

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