BOSCHLTD - AXISBANK Pair Analysis

home > strategies > pairs-trading
End-of-day divergence (Standardized residual) is 0.747.
Half life of pair is 2.61.
Real time (live) divergence is calculating using following formula:
[axisbank_price - (0.0215 * boschltd_price) - 0.146]/12.4

(where 0.146 is mean error and 12.4 is standard error)
Technical strength of BOSCHLTD is 7.0. (Support & Resistance)
Technical strength of AXISBANK is 7.7. (Support & Resistance)
Recommendation
You need to register and login with techpaisa to view detailed recommendations.
Entry Criterion: Take positions when divergence becomes (+/-)2.0. 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 boschltd-axisbank.
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

BOSCHLTD Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
July 27, 2017 23980.1 16875.0 1067.0 1422.0 23982.6
August 31, 2017 24145.15 72725.0 1314.0 1712.0 23982.6
Lot size: 25.0.

AXISBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
July 27, 2017 525.2 9765600.0 14766.0 18545.0 524.65
August 31, 2017 528.65 29100000.0 13328.0 16931.0 524.65
September 28, 2017 531.45 192000.0 66.0 67.0 524.65
Lot size: 1200.0.
Click here for backtesting results.

BOSCHLTD-AXISBANK Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 122847.379246
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 116692.469857
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 64438.785739
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 63554.5571065
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 62332.3362893