IFCI - SOUTHBANK Pair Analysis

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End-of-day divergence (Standardized residual) is 1.3.
Half life of pair is 67.2.
Real time (live) divergence is calculating using following formula:
[southbank_price - (0.941 * ifci_price) - 0.508]/5.87

(where 0.508 is mean error and 5.87 is standard error)
Technical strength of IFCI is 4.0. (Support & Resistance)
Technical strength of SOUTHBANK is 4.0. (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
November 30, 2017 23.9 80058000.0 523.0 537.0 23.8
December 28, 2017 24.0 7370000.0 42.0 42.0 23.8
January 25, 2018 24.15 132000.0 1.0 1.0 23.8
Lot size: 22000.0.

SOUTHBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
November 30, 2017 30.7 170112753.0 869.0 924.0 30.55
December 28, 2017 30.9 6329931.0 62.0 62.0 30.55
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