HCLTECH - WIPRO Pair Analysis

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End-of-day divergence (Standardized residual) is 2.16.
Half life of pair is 5.86.
Real time (live) divergence is calculating using following formula:
[wipro_price - (0.314 * hcltech_price) - -0.106]/8.77

(where -0.106 is mean error and 8.77 is standard error)
Technical strength of HCLTECH is 3.0. (Support & Resistance)
Technical strength of WIPRO is 6.7. (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
August 31, 2017 865.15 5930400.0 1850.0 1987.0 864.5
September 28, 2017 871.0 12600.0 12.0 12.0 864.5
October 26, 2017 855.0 1400.0 1.0 1.0 864.5
Lot size: 700.0.

WIPRO Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
August 31, 2017 289.8 20846400.0 1082.0 1136.0 289.95
September 28, 2017 288.95 1598400.0 50.0 50.0 289.95
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 55334.6003597
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 47005.2127887
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 20155.7310899
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 10176.9557828
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 9469.63744835