Ally Financial Correlations

ALLY Stock

USD 36.47 0.43 1.17%

The current 90-days correlation between Ally Financial and Discover Financial Services is 0.73 (i.e., Poor diversification). The correlation of Ally Financial 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.

Ally Financial Correlation With Market

Very weak diversification

The correlation between Ally Financial and DJI is 0.45 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ally Financial and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ally Financial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

For more information on how to buy Ally Stock please use our How to Invest in Ally Financial guide.

Moving together with Ally Stock

0.61	AXP	American Express	Pair Corr
0.79	COF	Capital One Financial	Pair Corr
0.72	DFS	Discover Financial	Pair Corr
0.75	BK	Bank of New York	Pair Corr
0.91	BN	Brookfield Corp	Pair Corr
0.63	CG	Carlyle Group	Pair Corr
0.79	FG	FG Annuities Life	Pair Corr
0.77	GS	Goldman Sachs Group	Pair Corr
0.65	MC	Moelis	Pair Corr
0.76	MS	Morgan Stanley Sell-off Trend	Pair Corr
0.63	NU	Nu Holdings	Pair Corr
0.81	PB	Prosperity Bancshares	Pair Corr

Moving against Ally Stock

0.32

Tradeweb Markets Sell-off Trend

Pair Corr

Related Correlations Analysis

	AXP	MA	V	PYPL	COF	DFS	SYF-PA	WU	BFH	SYF
AXP		0.52	0.52	0.26	0.65	0.73	-0.15	-0.36	0.52	0.68	AXP
MA	0.52		0.96	-0.34	0.74	0.72	-0.24	0.02	0.2	0.1	MA
V	0.52	0.96		-0.4	0.75	0.75	-0.36	-0.08	0.12	0.06	V
PYPL	0.26	-0.34	-0.4		-0.41	-0.36	0.27	-0.24	0.57	0.69	PYPL
COF	0.65	0.74	0.75	-0.41		0.98	-0.09	-0.01	0.1	0.23	COF
DFS	0.73	0.72	0.75	-0.36	0.98		-0.18	-0.1	0.11	0.27	DFS
SYF-PA	-0.15	-0.24	-0.36	0.27	-0.09	-0.18		0.24	0.08	0.23	SYF-PA
WU	-0.36	0.02	-0.08	-0.24	-0.01	-0.1	0.24		-0.11	-0.2	WU
BFH	0.52	0.2	0.12	0.57	0.1	0.11	0.08	-0.11		0.75	BFH
SYF	0.68	0.1	0.06	0.69	0.23	0.27	0.23	-0.2	0.75		SYF
	AXP	MA	V	PYPL	COF	DFS	SYF-PA	WU	BFH	SYF

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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

DFS	+ 0.98	COF
V	+ 0.96	MA
COF	+ 0.75	V
DFS	+ 0.75	V
SYF	+ 0.75	BFH
COF	+ 0.74	MA

High negative correlations

COF	- 0.41	PYPL
PYPL	- 0.4	V
DFS	- 0.36	PYPL
SYF-PA	- 0.36	V
WU	- 0.36	AXP
PYPL	- 0.34	MA

Risk-Adjusted Indicators

There is a big difference between Ally Stock performing well and Ally Financial 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 Ally Financial'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
AXP	1.02	0.04	0.03	0.04	1.39	(0.98)	1.84	(2.39)	7.33
MA	0.76	0.11	0.11	0.19	0.87	(0.80)	1.53	(1.81)	5.01
V	0.69	0.18	0.19	0.38	0.66	(0.74)	1.44	(1.33)	4.00
PYPL	1.61	(0.25)	0.00	(0.51)	0.00	0.00	3.25	(5.21)	18.09
COF	1.27	0.02	0.01	0.04	1.63	(1.25)	3.23	(2.69)	7.33
DFS	1.39	0.04	0.02	0.06	1.75	(1.42)	3.56	(3.23)	8.64
SYF-PA	0.83	(0.06)	0.00	(0.13)	0.00	0.00	2.15	(1.96)	5.87
WU	1.10	0.02	0.01	0.04	1.50	(1.19)	3.33	(1.84)	11.42
BFH	1.67	(0.08)	0.00	(0.07)	0.00	0.00	3.14	(4.59)	9.93
SYF	1.42	(0.21)	0.00	(0.33)	0.00	0.00	2.93	(3.82)	7.84

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