JSWENERGY - WOCKPHARMA Pair Analysis

home > strategies > pairs-trading
End-of-day divergence (Standardized residual) is -2.5.
Half life of pair is 7.02.
Real time (live) divergence is calculating using following formula:
[wockpharma_price - (11.1 * jswenergy_price) - 1.04]/53.7

(where 1.04 is mean error and 53.7 is standard error)
Technical strength of JSWENERGY is 3. (Support & Resistance)
Technical strength of WOCKPHARMA is 2.7. (Support & Resistance)
Recommendation
You need to register and login with techpaisa to view detailed recommendations.
Entry Criterion: Take positions when divergence becomes (+/-)1.5. And exit positions when divergence becomes (+/-)0.0.
Stop Loss: Put your stop loss when divergence becomes more than 2.0 or less than -2.0. 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 jswenergy-wockpharma.
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

JSWENERGY Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 29, 2017 65.05 59120000.0 1583.0 1729.0 64.55
July 27, 2017 65.1 340000.0 6.0 6.0 64.55
Lot size: 8000.0.

WOCKPHARMA Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 29, 2017 588.85 3273600.0 1629.0 1769.0 584.9
July 27, 2017 582.0 12800.0 4.0 4.0 584.9
Lot size: 600.0.
Click here for backtesting results.

JSWENERGY-WOCKPHARMA Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 98251.1013312
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 96037.3314707
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 38802.5568206
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 28061.1699782
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 689.358111053