INFY - TATAPOWER Pair Analysis

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End-of-day divergence (Standardized residual) is 0.76.
Half life of pair is 13.8.
Real time (live) divergence is calculating using following formula:
[tatapower_price - (0.0857 * infy_price) - 0.0852]/4.6

(where 0.0852 is mean error and 4.6 is standard error)
Technical strength of INFY is 8.1. (Support & Resistance)
Technical strength of TATAPOWER is 5.9. (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 infy-tatapower.
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

INFY Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 1021.35 30720500.0 8948.0 10455.0 1022.9
January 25, 2018 1026.3 757200.0 524.0 610.0 1022.9
February 22, 2018 1029.85 6000.0 5.0 5.0 1022.9
Lot size: 500.0.

TATAPOWER Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 91.45 47601000.0 1675.0 1802.0 91.2
January 25, 2018 91.95 1008000.0 42.0 47.0 91.2
Lot size: 9000.0.
Click here for backtesting results.

INFY-TATAPOWER Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 103850.338596
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 90572.0795279
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 37338.1603158
Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 32267.4500541
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 28806.7764816