HINDUNILVR - AXISBANK Pair Analysis

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End-of-day divergence (Standardized residual) is -2.58.
Half life of pair is 13.7.
Real time (live) divergence is calculating using following formula:
[axisbank_price - (0.581 * hindunilvr_price) - 0.325]/36.3

(where 0.325 is mean error and 36.3 is standard error)
Technical strength of HINDUNILVR is 6.9. (Support & Resistance)
Technical strength of AXISBANK is 7. (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 3.0 or less than -3.0. 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 hindunilvr-axisbank.
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

HINDUNILVR Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 29, 2017 1037.6 8892000.0 2733.0 2917.0 1040.95
July 27, 2017 1042.35 28200.0 17.0 17.0 1040.95
Lot size: 600.0.

AXISBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 29, 2017 514.05 40206000.0 11049.0 12299.0 511.45
July 27, 2017 511.1 492000.0 173.0 194.0 511.45
August 31, 2017 504.8 2400.0 1.0 2.0 511.45
Lot size: 1200.0.
Click here for backtesting results.

HINDUNILVR-AXISBANK Analysis with different time frames and thresholds

Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 50635.9902952
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 32569.3233152
Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 22982.3483003
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 20126.5828305
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 14048.2004079