CNXIT - MINDTREE Pair Analysis

home > strategies > pairs-trading
End-of-day divergence (Standardized residual) is 3.
Half life of pair is 9.76.
Real time (live) divergence is calculating using following formula:
[mindtree_price - (0.0467 * cnxit_price) - -1.43]/37.9

(where -1.43 is mean error and 37.9 is standard error)
Technical strength of CNXIT is 6.9. (Support & Resistance)
Technical strength of MINDTREE is 7.3. (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 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
January 25, 2018 701.4 2625600.0 4397.0 4641.0 702.4
February 22, 2018 704.65 289200.0 356.0 367.0 702.4
Lot size: 1200.0.
Click here for backtesting results.

CNXIT-MINDTREE Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 34591.9104342
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 34193.3281257
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 15746.5261763
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 11825.4622449
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 11310.8939295