ITC - PTC Pair Analysis

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End-of-day divergence (Standardized residual) is 1.89.
Half life of pair is 13.7.
Real time (live) divergence is calculating using following formula:
[ptc_price - (0.339 * itc_price) - 0.355]/11.1

(where 0.355 is mean error and 11.1 is standard error)
Technical strength of ITC is 3.5. (Support & Resistance)
Technical strength of PTC is 5.3. (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
August 31, 2017 279.35 49192800.0 11180.0 12029.0 279.2
September 28, 2017 280.95 1483200.0 321.0 332.0 279.2
October 26, 2017 282.05 122400.0 10.0 10.0 279.2
Lot size: 2400.0.

PTC Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
August 31, 2017 116.5 12656000.0 766.0 795.0 115.9
September 28, 2017 114.25 1000000.0 25.0 25.0 115.9
Lot size: 8000.0.
Click here for backtesting results.

ITC-PTC Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 68932.7520189
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 64097.5692366
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 59867.1766802
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 56741.5292658
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 54185.95231