MCDOWELL-N - JUBLFOOD Pair Analysis

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End-of-day divergence (Standardized residual) is 1.09.
Half life of pair is 19.4.
Real time (live) divergence is calculating using following formula:
[jublfood_price - (0.547 * mcdowell-n_price) - 8.51]/206

(where 8.51 is mean error and 206 is standard error)
Technical strength of MCDOWELL-N is 4.1. (Support & Resistance)
Technical strength of JUBLFOOD is 4. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.5. And exit positions when divergence becomes (+/-)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
March 28, 2018 3258.1 2046500.0 2490.0 2762.0 3238.85
April 26, 2018 3275.45 10250.0 33.0 33.0 3238.85
Lot size: 250.0.

JUBLFOOD Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 28, 2018 2011.7 2246000.0 4577.0 4876.0 2003.3
April 26, 2018 2020.15 18500.0 60.0 61.0 2003.3
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 109898.246297
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 107846.419395
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 97455.3180341
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 86822.3807531
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 73539.196695