HCLTECH - WIPRO Pair Analysis

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End-of-day divergence (Standardized residual) is -0.99.
Half life of pair is 14.8.
Real time (live) divergence is calculating using following formula:
[wipro_price - (0.329 * hcltech_price) - 0.157]/9

(where 0.157 is mean error and 9 is standard error)
Technical strength of HCLTECH is 8.1. (Support & Resistance)
Technical strength of WIPRO is 7.0. (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 2.5 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 hcltech-wipro.
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

HCLTECH Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 926.85 7442400.0 971.0 1042.0 923.7
November 30, 2017 927.55 389900.0 105.0 112.0 923.7
Lot size: 700.0.

WIPRO Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 295.2 33777600.0 5217.0 5805.0 294.75
November 30, 2017 296.05 3643200.0 600.0 789.0 294.75
Lot size: 2400.0.
Click here for backtesting results.

HCLTECH-WIPRO Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 61197.3582249
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 54075.9379266
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 27956.8256933
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 21308.9103828
Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 16919.3426598