Ally Financial Stock Story

ALLY
 Stock
  

USD 34.86  1.90  5.76%   

26% of stocks are less volatile than Ally Financial, and 99% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. While some of us are excited about financial services space, it makes sense to break down Ally Financial in greater detail to make a better estimate of its risk and reward. We will evaluate if Ally Financial's current volatility will continue into August.
Published over two weeks ago
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Breaking down Ally Financial volatility

Ally Financial currently holds roughly 3.93 B in cash with 4.51 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 12.01.
Volatility is a rate at which the price of Ally Financial or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Ally Financial may increase or decrease. In other words, similar to Ally Financial's beta indicator, it measures the risk of Ally Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ally Financial fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Ally Financial's Liquidity

Ally Financial financial leverage refers to using borrowed capital as a funding source to finance Ally Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ally Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Ally Financial's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Ally Financial, but it might be worth checking our own buy vs. sell analysis

Ally Financial Volatility Drivers

Ally Financial unsystematic risk is unique to Ally Financial and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Ally Financial you can also buy Alcoa Corp. You can also mitigate this risk by investing in the credit services sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Ally Financial important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Ally Financial income statement and balance sheet. Here are more details about Ally Financial volatility.
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