CNXIT - MINDTREE Pair Analysis

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End-of-day divergence (Standardized residual) is 2.89.
Half life of pair is 16.4.
Real time (live) divergence is calculating using following formula:
[mindtree_price - (0.0568 * cnxit_price) - -6.05]/97

(where -6.05 is mean error and 97 is standard error)
Technical strength of CNXIT is 6.9. (Support & Resistance)
Technical strength of MINDTREE is 7.3. (Support & Resistance)
Recommendation
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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 2.5 or less than -2.5. 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 cnxit-mindtree.
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

Futures are not traded in CNXIT.

MINDTREE Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 1066.6 1874400.0 11766.0 12842.0 1070.6
May 31, 2018 1046.8 3052800.0 4996.0 5501.0 1070.6
June 28, 2018 1044.45 28800.0 28.0 28.0 1070.6
Lot size: 1200.0.
Click here for backtesting results.

CNXIT-MINDTREE Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 42297.2001131
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 28887.3813027
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 21609.715693
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 21095.1473776