HINDPETRO - IGL Pair Analysis

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End-of-day divergence (Standardized residual) is 1.79.
Half life of pair is 3.81.
Real time (live) divergence is calculating using following formula:
[igl_price - (0.858 * hindpetro_price) - 0.932]/18.5

(where 0.932 is mean error and 18.5 is standard error)
Technical strength of HINDPETRO is 1.5. (Support & Resistance)
Technical strength of IGL is 4.3. (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 hindpetro-igl.
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

HINDPETRO Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 304.55 25563825.0 7494.0 9106.0 304.3
May 31, 2018 306.15 6854400.0 2043.0 3126.0 304.3
June 28, 2018 307.6 137025.0 110.0 110.0 304.3
Lot size: 1575.0.

IGL Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 294.75 4083750.0 785.0 889.0 294.95
May 31, 2018 296.15 712250.0 316.0 369.0 294.95
June 28, 2018 295.5 5500.0 2.0 2.0 294.95
Lot size: 2750.0.
Click here for backtesting results.

HINDPETRO-IGL Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 30842.7590921
Time Frame 1month, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 13956.5870382
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 9038.59467261