ASIANPAINT - ZEEL Pair Analysis

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End-of-day divergence (Standardized residual) is 2.31.
Half life of pair is 9.96.
Real time (live) divergence is calculating using following formula:
[zeel_price - (0.456 * asianpaint_price) - 0.431]/26.4

(where 0.431 is mean error and 26.4 is standard error)
Technical strength of ASIANPAINT is 1.9. (Support & Resistance)
Technical strength of ZEEL is 6.7. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.5. And exit positions when divergence becomes (+/-)0.0.
Stop Loss: Put your stop loss when divergence becomes more than 3.0 or less than -3.0. We suggest you always use stop losses.
Note: When you trade in futures, keep in mind the expiry date of futures as divergence might not end before expiry date.
Click here to see all recommendations for pair asianpaint-zeel.
Analyse any other pair:

How to choose pairs?
Choose stocks from same sector/subsector.
Use stock with large market capitalization as first stock.
Here is a list of pairs chosen analytically.

Charts

ASIANPAINT Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 1123.45 3659400.0 1452.0 1496.0 1118.7
January 25, 2018 1128.6 76800.0 50.0 60.0 1118.7
Lot size: 600.0.

ZEEL Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 573.35 5873400.0 1824.0 1995.0 571.5
January 25, 2018 575.9 102700.0 33.0 35.0 571.5
Lot size: 1300.0.
Click here for backtesting results.

ASIANPAINT-ZEEL Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 76274.8738428
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 74517.5148527
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 73208.7784774
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 65166.7938161
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 62100.8308951