EICHERMOT - KOTAKBANK Pair Analysis

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End-of-day divergence (Standardized residual) is 0.91.
Half life of pair is 2.68.
Real time (live) divergence is calculating using following formula:
[kotakbank_price - (0.0343 * eichermot_price) - 0.5]/20.3

(where 0.5 is mean error and 20.3 is standard error)
Technical strength of EICHERMOT is 4.9. (Support & Resistance)
Technical strength of KOTAKBANK is 6.5. (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 eichermot-kotakbank.
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

EICHERMOT Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 29512.3 190300.0 1995.0 2233.0 29478.7
January 25, 2018 29647.35 3025.0 111.0 117.0 29478.7
February 22, 2018 29775.55 75.0 1.0 1.0 29478.7
Lot size: 25.0.

KOTAKBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 1033.4 8560000.0 7395.0 8040.0 1030.1
January 25, 2018 1037.85 233600.0 175.0 188.0 1030.1
Lot size: 800.0.
Click here for backtesting results.

EICHERMOT-KOTAKBANK Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 74889.8052433
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 71369.0996937
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 15279.560633
Time Frame 1month, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 13847.3583659
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 11831.9213044