MCDOWELL-N - JUBLFOOD Pair Analysis

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End-of-day divergence (Standardized residual) is 1.56.
Half life of pair is 14.7.
Real time (live) divergence is calculating using following formula:
[jublfood_price - (0.547 * mcdowell-n_price) - 3.11]/113

(where 3.11 is mean error and 113 is standard error)
Technical strength of MCDOWELL-N is 4.1. (Support & Resistance)
Technical strength of JUBLFOOD is 7.7. (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 mcdowell-n-jublfood.
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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

MCDOWELL-N Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 2473.0 2000000.0 594.0 653.0 2469.1
November 30, 2017 2492.3 46750.0 30.0 44.0 2469.1
Lot size: 250.0.

JUBLFOOD Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 1531.0 1574500.0 555.0 573.0 1529.7
November 30, 2017 1537.25 162500.0 37.0 41.0 1529.7
Lot size: 500.0.
Click here for backtesting results.

MCDOWELL-N-JUBLFOOD Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 125601.456228
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 113158.527965
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 77901.4431053
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 72550.238957
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 58388.6111771