COALINDIA - IRB Pair Analysis

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End-of-day divergence (Standardized residual) is -1.73.
Half life of pair is 9.72.
Real time (live) divergence is calculating using following formula:
[irb_price - (0.809 * coalindia_price) - 0.537]/14.3

(where 0.537 is mean error and 14.3 is standard error)
Technical strength of COALINDIA is 8.1. (Support & Resistance)
Technical strength of IRB is 5. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)1.5. And exit positions when divergence becomes (+/-)0.0.
Stop Loss: Put your stop loss when divergence becomes more than 2.0 or less than -2.0. 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 coalindia-irb.
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

COALINDIA Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 28, 2018 287.4 14680600.0 1522.0 1632.0 310.95
April 26, 2018 287.5 77000.0 22.0 22.0 310.95
Lot size: 2200.0.

IRB Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 28, 2018 228.25 14957500.0 1390.0 1490.0 227.25
April 26, 2018 227.7 47500.0 13.0 13.0 227.25
Lot size: 2500.0.
Click here for backtesting results.

COALINDIA-IRB Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 97381.1112322
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 90511.2008007
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 89015.0695447
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 70431.332452
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 31630.4158403