IRB - GSFC Pair Analysis

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End-of-day divergence (Standardized residual) is -2.05.
Half life of pair is 19.0.
Real time (live) divergence is calculating using following formula:
[gsfc_price - (0.59 * irb_price) - 0.478]/12.8

(where 0.478 is mean error and 12.8 is standard error)
Technical strength of IRB is 7.3. (Support & Resistance)
Technical strength of GSFC is 6.5. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.0. 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 irb-gsfc.
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

IRB Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 265.15 14212500.0 4520.0 5677.0 264.45
May 31, 2018 266.55 4002500.0 1321.0 2129.0 264.45
Lot size: 2500.0.

GSFC Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 130.3 15813000.0 1208.0 1567.0 130.35
May 31, 2018 130.8 3694500.0 520.0 804.0 130.35
June 28, 2018 133.05 31500.0 1.0 1.0 130.35
Lot size: 4500.0.
Click here for backtesting results.

IRB-GSFC Analysis with different time frames and thresholds

Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 45721.874941
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 43568.5356175
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 26735.2248054
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 14276.8519749
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 11118.6187969