HEROMOTOCO - MRF Pair Analysis

home > strategies > pairs-trading
End-of-day divergence (Standardized residual) is 2.54.
Half life of pair is 181.0.
Real time (live) divergence is calculating using following formula:
[mrf_price - (10.9 * heromotoco_price) - -1.57e+03]/9.82e+03

(where -1.57e+03 is mean error and 9.82e+03 is standard error)
Technical strength of HEROMOTOCO is 7.5. (Support & Resistance)
Technical strength of MRF is 6.9. (Support & Resistance)
Recommendation
You need to register and login with techpaisa to view detailed recommendations.
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 heromotoco-mrf.
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

HEROMOTOCO Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 30, 2017 3347.3 1215000.0 2733.0 3253.0 3343.2
April 27, 2017 3361.35 239600.0 1179.0 1426.0 3343.2
May 25, 2017 3379.9 3000.0 2.0 2.0 3343.2
Lot size: 200.0.

MRF Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 30, 2017 59905.35 41910.0 3396.0 3970.0 59888.5
April 27, 2017 60151.55 20190.0 902.0 1202.0 59888.5
May 25, 2017 59500.0 285.0 2.0 4.0 59888.5
Lot size: 15.0.
Click here for backtesting results.

HEROMOTOCO-MRF Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 8702.75605462
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 4694.05451675