LUPIN - APOLLOHOSP Pair Analysis

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End-of-day divergence (Standardized residual) is 2.85.
Half life of pair is 11.5.
Real time (live) divergence is calculating using following formula:
[apollohosp_price - (0.845 * lupin_price) - 5.02]/95.8

(where 5.02 is mean error and 95.8 is standard error)
Technical strength of LUPIN is 2. (Support & Resistance)
Technical strength of APOLLOHOSP is 3.5. (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 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
June 29, 2017 1118.25 8688800.0 9357.0 10409.0 1112.55
July 27, 2017 1118.95 108400.0 148.0 148.0 1112.55
Lot size: 400.0.

APOLLOHOSP Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 29, 2017 1225.3 1883600.0 873.0 927.0 1217.35
Lot size: 400.0.
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 107000.44848
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 79053.4244431
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 75398.278667
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 72859.974222
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 72177.315118