IFCI - SOUTHBANK Pair Analysis

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End-of-day divergence (Standardized residual) is 3.52.
Half life of pair is 11.4.
Real time (live) divergence is calculating using following formula:
[southbank_price - (0.793 * ifci_price) - 0.113]/2.12

(where 0.113 is mean error and 2.12 is standard error)
Technical strength of IFCI is 2.7. (Support & Resistance)
Technical strength of SOUTHBANK is 7.1. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.5. 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 ifci-southbank.
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

IFCI Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 29, 2017 24.4 75548000.0 1197.0 1310.0 24.35
July 27, 2017 24.65 836000.0 23.0 24.0 24.35
Lot size: 22000.0.

SOUTHBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 29, 2017 27.0 106448892.0 1535.0 1591.0 26.9
July 27, 2017 26.85 4010061.0 22.0 22.0 26.9
Lot size: 33141.0.
Click here for backtesting results.

IFCI-SOUTHBANK Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 102512.663113
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 79935.758277
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 65816.0381093
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 56299.2721477
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 54619.7405097