GMRINFRA - SUZLON Pair Analysis

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End-of-day divergence (Standardized residual) is -1.72.
Half life of pair is 9.61.
Real time (live) divergence is calculating using following formula:
[suzlon_price - (0.925 * gmrinfra_price) - 0.00244]/1.41

(where 0.00244 is mean error and 1.41 is standard error)
Technical strength of GMRINFRA is 3.9. (Support & Resistance)
Technical strength of SUZLON is 3.1. (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 gmrinfra-suzlon.
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

GMRINFRA Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 17.25 314820000.0 1163.0 1251.0 17.2
January 25, 2018 17.35 11700000.0 33.0 34.0 17.2
Lot size: 45000.0.

SUZLON Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 13.55 408540000.0 480.0 610.0 13.5
January 25, 2018 13.65 21105000.0 66.0 66.0 13.5
February 22, 2018 13.75 1085000.0 5.0 5.0 13.5
Lot size: 30000.0.
Click here for backtesting results.

GMRINFRA-SUZLON Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 162502.714962
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 152076.337378
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 120920.398475
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 116207.807581
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 107746.253782