COALINDIA - OFSS Pair Analysis

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End-of-day divergence (Standardized residual) is -1.99.
Half life of pair is 8.74.
Real time (live) divergence is calculating using following formula:
[ofss_price - (13.7 * coalindia_price) - 10.8]/192

(where 10.8 is mean error and 192 is standard error)
Technical strength of COALINDIA is 7.5. (Support & Resistance)
Technical strength of OFSS is 3.9. (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 coalindia-ofss.
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
October 26, 2017 286.35 20012400.0 599.0 650.0 285.8
November 30, 2017 287.5 963900.0 81.0 96.0 285.8
December 28, 2017 288.0 32300.0 4.0 4.0 285.8
Lot size: 1700.0.

OFSS Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 3548.0 53700.0 26.0 26.0 3550.95
Lot size: 150.0.
Click here for backtesting results.

COALINDIA-OFSS Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 73967.9832449
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 41376.8436741
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 41178.021009
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 38219.2403241
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 37073.1553015