LUPIN - APOLLOHOSP Pair Analysis

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End-of-day divergence (Standardized residual) is 1.4.
Half life of pair is 55.3.
Real time (live) divergence is calculating using following formula:
[apollohosp_price - (0.936 * lupin_price) - 19.2]/171

(where 19.2 is mean error and 171 is standard error)
Technical strength of LUPIN is 2.5. (Support & Resistance)
Technical strength of APOLLOHOSP is 8.3. (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 lupin-apollohosp.
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

LUPIN Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
July 27, 2017 1109.35 1424000.0 7217.0 11202.0 1110.05
August 31, 2017 1116.5 6362000.0 7921.0 12428.0 1110.05
September 28, 2017 1120.95 62800.0 76.0 80.0 1110.05
Lot size: 400.0.

APOLLOHOSP Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
July 27, 2017 1298.1 481500.0 1046.0 1470.0 1297.8
August 31, 2017 1301.1 899500.0 1067.0 1463.0 1297.8
Lot size: 500.0.
Click here for backtesting results.

LUPIN-APOLLOHOSP Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 104643.74518
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 70503.2709222
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 60894.6178289
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 58580.4001563
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 52933.9033589