ITC - GODREJIND Pair Analysis

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End-of-day divergence (Standardized residual) is -1.94.
Half life of pair is 6.37.
Real time (live) divergence is calculating using following formula:
[godrejind_price - (2.22 * itc_price) - 0.098]/25.3

(where 0.098 is mean error and 25.3 is standard error)
Technical strength of ITC is 5. (Support & Resistance)
Technical strength of GODREJIND is 2.1. (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 itc-godrejind.
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

ITC Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 28, 2018 269.8 81672000.0 4620.0 4939.0 269.05
April 26, 2018 271.05 631200.0 137.0 145.0 269.05
May 31, 2018 272.0 14400.0 6.0 6.0 269.05
Lot size: 2400.0.

GODREJIND Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 28, 2018 550.9 2154000.0 764.0 813.0 548.5
April 26, 2018 553.3 10500.0 1.0 1.0 548.5
Lot size: 1500.0.
Click here for backtesting results.

ITC-GODREJIND Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 95708.239323
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 94305.0359545
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 85626.9649937
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 84054.526392
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 83823.7872815