ALLY vs. CARZ

Last updated Jun 4, 2026

ALLY (Ally Financial Inc.) is a stock, while CARZ (First Trust NASDAQ Global Auto Index Fund) is Consumer Discretionary Equities fund tracking the NASDAQ OMX Global Automobile (TR). Over the past 10 years, ALLY returned 11.79%/yr vs 16.49%/yr for CARZ. At a 0.48 correlation, their price movements are largely independent.

Performance

ALLY vs. CARZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ally Financial Inc. (ALLY) and First Trust NASDAQ Global Auto Index Fund (CARZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALLY achieves a -8.36% return, which is significantly lower than CARZ's 57.52% return. Over the past 10 years, ALLY has underperformed CARZ with an annualized return of 11.79%, while CARZ has yielded a comparatively higher 16.49% annualized return.

ALLY

• 1D: -2.94%
• 1M: -4.88%
• YTD: -8.36%
• 6M: -0.62%
• 1Y: 18.19%
• 3Y*: 17.03%
• 5Y*: -2.68%
• 10Y*: 11.79%

CARZ

• 1D: -0.37%
• 1M: 19.08%
• YTD: 57.52%
• 6M: 60.74%
• 1Y: 116.25%
• 3Y*: 34.19%
• 5Y*: 16.32%
• 10Y*: 16.49%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALLY vs. CARZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ALLY Ally Financial Inc.	-8.36%	29.92%	6.37%	49.22%	-46.89%	36.04%	20.56%	37.94%	-20.67%	56.05%
CARZ First Trust NASDAQ Global Auto Index Fund	57.52%	37.18%	3.26%	42.47%	-31.25%	18.09%	54.66%	11.39%	-23.91%	25.47%

Correlation

The correlation between ALLY and CARZ is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Apr 11, 2014	0.48

The correlation between ALLY and CARZ shifts across timeframes, from 0.37 (1 year) to 0.52 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

ALLY vs. CARZ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALLY

ALLY Risk / Return Rank: 57
ALLY Sharpe Ratio Rank: 61
ALLY Sortino Ratio Rank: 55
ALLY Omega Ratio Rank: 53
ALLY Calmar Ratio Rank: 57
ALLY Martin Ratio Rank: 59

CARZ

CARZ Risk / Return Rank: 95
CARZ Sharpe Ratio Rank: 97
CARZ Sortino Ratio Rank: 95
CARZ Omega Ratio Rank: 94
CARZ Calmar Ratio Rank: 95
CARZ Martin Ratio Rank: 95

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALLY vs. CARZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ally Financial Inc. (ALLY) and First Trust NASDAQ Global Auto Index Fund (CARZ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ALLY	CARZ	Difference
Sharpe ratio: Return per unit of total volatility	0.62	4.53	-3.91
Sortino ratio: Return per unit of downside risk	1.06	5.19	-4.14
Omega ratio: Gain probability vs. loss probability	1.13	1.70	-0.57
Calmar ratio: Return relative to maximum drawdown	0.79	8.10	-7.30
Martin ratio: Return relative to average drawdown	1.97	32.71	-30.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ALLY vs. CARZ - Sharpe Ratio Comparison

The current ALLY Sharpe Ratio is 0.62, which is lower than the CARZ Sharpe Ratio of 4.53. The chart below compares the historical Sharpe Ratios of ALLY and CARZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ALLY	CARZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.62	4.53	-3.91
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.07	0.58	-0.65
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.63	-0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.18	0.46	-0.27

Drawdowns

ALLY vs. CARZ - Drawdown Comparison

The maximum ALLY drawdown since its inception was -66.24%, which is greater than CARZ's maximum drawdown of -51.20%. Use the drawdown chart below to compare losses from any high point for ALLY and CARZ.

Drawdown Indicators

	ALLY	CARZ	Difference
Max Drawdown Largest peak-to-trough decline	-66.24%	-51.20%	-15.04%
Max Drawdown (1Y) Largest decline over 1 year	-23.04%	-14.44%	-8.60%
Max Drawdown (3Y) Largest decline over 3 years	-31.60%	-27.84%	-3.76%
Max Drawdown (5Y) Largest decline over 5 years	-58.08%	-40.30%	-17.78%
Max Drawdown (10Y) Largest decline over 10 years	-66.24%	-51.20%	-15.04%
Current Drawdown Current decline from peak	-14.05%	-0.37%	-13.68%
Average Drawdown Average peak-to-trough decline	-20.38%	-12.90%	-7.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.24%	3.57%	+5.67%

Volatility

ALLY vs. CARZ - Volatility Comparison

The current volatility for Ally Financial Inc. (ALLY) is 8.67%, while First Trust NASDAQ Global Auto Index Fund (CARZ) has a volatility of 10.14%. This indicates that ALLY experiences smaller price fluctuations and is considered to be less risky than CARZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALLY	CARZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.67%	10.14%	-1.47%
Volatility (6M) Calculated over the trailing 6-month period	21.74%	20.31%	+1.43%
Volatility (1Y) Calculated over the trailing 1-year period	29.41%	25.79%	+3.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.48%	28.11%	+10.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	39.58%	26.27%	+13.31%

Dividends

ALLY vs. CARZ - Dividend Comparison

ALLY's dividend yield for the trailing twelve months is around 2.93%, more than CARZ's 1.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALLY Ally Financial Inc.	2.93%	2.65%	3.33%	3.44%	4.91%	1.85%	2.13%	2.23%	2.47%	1.37%	0.84%	0.00%
CARZ First Trust NASDAQ Global Auto Index Fund	1.35%	2.13%	1.17%	1.40%	1.59%	2.25%	0.63%	3.23%	2.85%	2.11%	2.47%	1.64%

Frequently Asked Questions

Can I hold both ALLY and CARZ in my portfolio?

ALLY and CARZ have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALLY or CARZ?

CARZ has higher volatility (10.14%) compared to ALLY (8.67%). In terms of maximum drawdown, ALLY dropped -66.24% vs CARZ's -51.20%.

Which has better risk-adjusted returns?

CARZ currently has the higher Sharpe Ratio (4.53 vs 0.62), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.