ITC - PTC Pair Analysis

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End-of-day divergence (Standardized residual) is 1.11.
Half life of pair is 29.9.
Real time (live) divergence is calculating using following formula:
[ptc_price - (0.372 * itc_price) - 1.07]/17.3

(where 1.07 is mean error and 17.3 is standard error)
Technical strength of ITC is 4. (Support & Resistance)
Technical strength of PTC is 5. (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
October 26, 2017 271.15 53829600.0 3920.0 4485.0 270.35
November 30, 2017 272.45 9050400.0 770.0 942.0 270.35
December 28, 2017 273.8 48000.0 11.0 11.0 270.35
Lot size: 2400.0.

PTC Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 121.5 16456000.0 890.0 925.0 121.0
November 30, 2017 122.2 1496000.0 185.0 192.0 121.0
Lot size: 8000.0.
Click here for backtesting results.

ITC-PTC Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 62227.6381908
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 59488.4219186
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 58868.2390392
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 44741.6222097
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 41461.5262318