ITC - PTC Pair Analysis

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End-of-day divergence (Standardized residual) is 0.0651.
Half life of pair is 160.
Real time (live) divergence is calculating using following formula:
[ptc_price - (0.411 * itc_price) - 1.21]/16.1

(where 1.21 is mean error and 16.1 is standard error)
Technical strength of ITC is 6.5. (Support & Resistance)
Technical strength of PTC is 3.1. (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-ptc.
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
December 28, 2017 265.65 81631200.0 6172.0 6824.0 264.6
January 25, 2018 266.85 5971200.0 421.0 468.0 264.6
Lot size: 2400.0.

PTC Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 111.25 20368000.0 727.0 754.0 110.95
January 25, 2018 111.8 576000.0 26.0 26.0 110.95
Lot size: 8000.0.
Click here for backtesting results.

ITC-PTC Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 58868.2390392
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 56044.4163826
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 51210.7809756
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 39663.1072632
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 39632.076083