Stock Price Trends

Ally Financial Inc (ALLY)

Ally Financial Inc., a banking holding company, offers a variety of digital financial products and services to consumers, business and corporate clients primarily in the United States and Canada. The company is headquartered in Detroit, Michigan.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 58.18% per annum.
  • ALLY price at the close of July 25, 2024 was $43.35 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 97.45% per annum.
  • ALLY price at the close of July 25, 2024 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of ALLY price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: March 10, 2023
End date: July 25, 2024

a = 1.4420

b = 0.0013

s = 0.0818

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 58.18%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0818) – 1
= 38.73%

March 10, 2023 calculations

Top border of price channel:

Exp(Y912)
= Exp(a + b × X912 + 2 × s)
= Exp(a + b × 1,323 + 2 × s)
= Exp(1.4420 + 0.0013 × 1,323 + 2 × 0.0818)
= Exp(3.2678)
= $26.25

Bottom border of price channel:

Exp(Y912)
= Exp(a + b × X912 – 2 × s)
= Exp(a + b × 1,323 – 2 × s)
= Exp(1.4420 + 0.0013 × 1,323 – 2 × 0.0818)
= Exp(2.9405)
= $18.93

July 25, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(1.4420 + 0.0013 × 1,826 + 2 × 0.0818)
= Exp(3.8998)
= $49.39

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.4420 + 0.0013 × 1,826 – 2 × 0.0818)
= Exp(3.5724)
= $35.60

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 58.18% per annum.
  • ALLY price at the close of July 25, 2024 was $43.35 and was inside the primary price channel.

Secondary Trend

Start date: September 20, 2023
End date: July 25, 2024

a = 0.4098

b = 0.0019

s = 0.0760

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0019) – 1
= 97.45%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0760) – 1
= 35.51%

September 20, 2023 calculations

Top border of price channel:

Exp(Y1,045)
= Exp(a + b × X1,045 + 2 × s)
= Exp(a + b × 1,517 + 2 × s)
= Exp(0.4098 + 0.0019 × 1,517 + 2 × 0.0760)
= Exp(3.3892)
= $29.64

Bottom border of price channel:

Exp(Y1,045)
= Exp(a + b × X1,045 – 2 × s)
= Exp(a + b × 1,517 – 2 × s)
= Exp(0.4098 + 0.0019 × 1,517 – 2 × 0.0760)
= Exp(3.0853)
= $21.87

July 25, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(0.4098 + 0.0019 × 1,826 + 2 × 0.0760)
= Exp(3.9652)
= $52.73

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(0.4098 + 0.0019 × 1,826 – 2 × 0.0760)
= Exp(3.6613)
= $38.91

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 97.45% per annum.
  • ALLY price at the close of July 25, 2024 was inside the secondary price channel.