Ally Financial Stock Alpha and Beta Analysis

ALLY
 Stock
  

USD 26.03  0.64  2.40%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Ally Financial. It also helps investors analyze the systematic and unsystematic risks associated with investing in Ally Financial over a specified time horizon. Remember, high Ally Financial's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please continue to Ally Financial Backtesting, Ally Financial Valuation, Ally Financial Correlation, Ally Financial Hype Analysis, Ally Financial Volatility, Ally Financial History and analyze Ally Financial Performance.
  
Please note that although Ally Financial alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Ally Financial did 0.45  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Ally Financial stock's relative risk over its benchmark. Ally Financial has a beta of 1.84  . Let's try to break down what Ally Financial's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Ally Financial will likely underperform.
Ally Financial Enterprise Value over EBIT is fairly stable at the moment as compared to the past year. Ally Financial reported Enterprise Value over EBIT of 5.00 in 2021. Enterprise Value over EBITDA is likely to rise to 4.17 in 2022, whereas Book Value per Share is likely to drop 40.15 in 2022.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Enterprise Value

21.07 Billion

Ally Financial Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Ally Financial market risk premium is the additional return an investor will receive from holding Ally Financial long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Ally Financial. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Ally Financial's performance over market.
α-0.45   β1.84
90 days against DJI

Ally Financial expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Ally Financial's Buy-and-hold return. Our buy-and-hold chart shows how Ally Financial performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Ally Financial Market Price Analysis

Market price analysis indicators help investors to evaluate how Ally Financial stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Ally Financial shares will generate the highest return on investment. By understating and applying Ally Financial stock market price indicators, traders can identify Ally Financial position entry and exit signals to maximize returns.

Ally Financial Return and Market Media

The median price of Ally Financial for the period between Tue, Aug 30, 2022 and Mon, Nov 28, 2022 is 28.74 with a coefficient of variation of 9.45. The daily time series for the period is distributed with a sample standard deviation of 2.76, arithmetic mean of 29.21, and mean deviation of 2.35. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Ally Financial, OneMain added to Citis negative catalyst wat...09/13/2022
2
Got 1,000 2 Top Warren Buffett Stocks to Buy for the Long Te...09/19/2022
3
Q4 Outlook 2022 Recession or Santa Claus rally - Ally Bank09/26/2022
4
EPS Estimate09/30/2022
5
Why investors shouldnt expect a break from the stock-market ...10/04/2022
6
Acquisition by Melissa Goldman of 1168 shares of Ally Financ...10/11/2022
7
US STOCKS-SP 500 ends lower after volatile session, Fed minu...10/12/2022
8
Ally Financial Stock At Key Support Ahead Of Q3 Earnings - S...10/18/2022
9
EPS Reported10/19/2022
10
Huntington Bancshares takes long view as other banks scrambl...10/21/2022
11
Down 79.9, This Growth Stock Is a Screaming Buy Right Now - ...11/07/2022
12
3 Top Dividend Stocks to Buy Now With Yields of 3.4 percent ...11/21/2022
13
EPS Estimate11/23/2022

About Ally Financial Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Ally Financial or other stocks. Alpha measures the amount that position in Ally Financial has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2019 2020 2021 2022 (projected)
Accrued Expenses Turnover13.5512.9114.7412.53
PPandE Turnover19.215.6711.1911.49

Ally Financial Upcoming Company Events

As portrayed in its financial statements, the presentation of Ally Financial's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ally Financial's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Ally Financial's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Ally Financial. Please utilize our Beneish M Score to check the likelihood of Ally Financial's management manipulating its earnings.
Upcoming Quarterly Report21st of January 2022
Next Financial Report15th of April 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End21st of January 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Ally Financial

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please continue to Ally Financial Backtesting, Ally Financial Valuation, Ally Financial Correlation, Ally Financial Hype Analysis, Ally Financial Volatility, Ally Financial History and analyze Ally Financial Performance. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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When running Ally Financial price analysis, check to measure Ally Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ally Financial is operating at the current time. Most of Ally Financial's value examination focuses on studying past and present price action to predict the probability of Ally Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ally Financial's price. Additionally, you may evaluate how the addition of Ally Financial to your portfolios can decrease your overall portfolio volatility.
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Ally Financial technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Ally Financial technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Ally Financial trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...