IFCI - SOUTHBANK Pair Analysis

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End-of-day divergence (Standardized residual) is -0.366.
Half life of pair is 17.2.
Real time (live) divergence is calculating using following formula:
[southbank_price - (0.799 * ifci_price) - 0.0431]/1.71

(where 0.0431 is mean error and 1.71 is standard error)
Technical strength of IFCI is 4.5. (Support & Resistance)
Technical strength of SOUTHBANK is 4. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.5. And exit positions when divergence becomes (+/-)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
January 25, 2017 27.05 56562000.0 830.0 898.0 27.0
February 23, 2017 27.05 13662000.0 398.0 444.0 27.0
March 30, 2017 27.0 748000.0 25.0 25.0 27.0
Lot size: 22000.0.

SOUTHBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
January 25, 2017 21.1 40470000.0 328.0 373.0 21.0
February 23, 2017 21.2 8550000.0 101.0 132.0 21.0
Lot size: 30000.0.
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 83620.9010088
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 60117.5210001
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 54619.7405097
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 53578.5192646
Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 44763.5555701