IFCI - SOUTHBANK Pair Analysis

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End-of-day divergence (Standardized residual) is -1.41.
Half life of pair is 14.7.
Real time (live) divergence is calculating using following formula:
[southbank_price - (0.791 * ifci_price) - 0.0595]/1.8

(where 0.0595 is mean error and 1.8 is standard error)
Technical strength of IFCI is 5. (Support & Resistance)
Technical strength of SOUTHBANK is 2. (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
February 23, 2017 28.35 55286000.0 112.0 127.0 28.4
March 30, 2017 28.5 7392000.0 49.0 63.0 28.4
Lot size: 22000.0.

SOUTHBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
February 23, 2017 20.1 37813881.0 491.0 572.0 20.0
March 30, 2017 20.25 17200179.0 198.0 236.0 20.0
April 27, 2017 20.15 265128.0 1.0 1.0 20.0
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 85589.2804401
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 65816.0545015
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 62085.9004314
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 56300.0250728
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 54619.7405097