OIL - IRB Pair Analysis

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End-of-day divergence (Standardized residual) is 0.214.
Half life of pair is -10.3.
Real time (live) divergence is calculating using following formula:
[irb_price - (1.12 * oil_price) - 0.216]/20.9

(where 0.216 is mean error and 20.9 is standard error)
Technical strength of OIL is 6.7. (Support & Resistance)
Technical strength of IRB is 7.3. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)1.5. And exit positions when divergence becomes (+/-)0.0.
Stop Loss: Put your stop loss when divergence becomes more than 2.0 or less than -2.0. 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 oil-irb.
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

OIL Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 231.0 3106686.0 523.0 542.0 231.6
May 31, 2018 229.35 557436.0 190.0 195.0 231.6
Lot size: 3399.0.

IRB Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 265.15 14212500.0 4520.0 5677.0 264.45
May 31, 2018 266.55 4002500.0 1321.0 2129.0 264.45
Lot size: 2500.0.
Click here for backtesting results.

OIL-IRB Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 75488.8177184
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 40795.2912471
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 15091.1921335
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 11228.003723
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 6442.84904391