Co-movers

daily closes · 500dMethod

Moved together

YUMwithMCD

×0.44co-movement · MCD on YUM · 500d

r 0.55scale to r 0.75

Shared co-movers2with YUMwith MCD

DPZDomino's Pizza Incr 0.45r 0.45

OTISOtis Worldwide Corpr 0.40r 0.41

YUM, solidMCD, hatched× = co-movement · βr = correlationBar = r to r 0.75Order: weaker of A and BSource: daily closes

YUM compared with MCD: revenue, margins and what each company keeps, and the suppliers and customers both name