LUPIN - APOLLOHOSP Pair Analysis

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End-of-day divergence (Standardized residual) is -0.157.
Half life of pair is -86.6.
Real time (live) divergence is calculating using following formula:
[apollohosp_price - (1.03 * lupin_price) - 20.6]/169

(where 20.6 is mean error and 169 is standard error)
Technical strength of LUPIN is 5.1. (Support & Resistance)
Technical strength of APOLLOHOSP is 4.1. (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 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
September 28, 2017 1013.3 7130000.0 8671.0 10125.0 1014.4
October 26, 2017 1018.6 1346000.0 1512.0 2219.0 1014.4
November 30, 2017 1027.5 12000.0 20.0 21.0 1014.4
Lot size: 400.0.

APOLLOHOSP Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
September 28, 2017 1034.0 1644000.0 1384.0 1459.0 1034.7
October 26, 2017 1039.95 152500.0 286.0 304.0 1034.7
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 113242.748601
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 76355.7704282
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 66242.195732
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 51784.5261428
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 48752.6749849