PFC - SBIN Pair Analysis

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End-of-day divergence (Standardized residual) is -1.24.
Half life of pair is 20.6.
Real time (live) divergence is calculating using following formula:
[sbin_price - (2.05 * pfc_price) - 1.62]/22.8

(where 1.62 is mean error and 22.8 is standard error)
Technical strength of PFC is 6. (Support & Resistance)
Technical strength of SBIN is 3.9. (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 pfc-sbin.
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

PFC Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 132.35 38376000.0 4502.0 5005.0 131.75
November 30, 2017 133.0 6780000.0 873.0 1010.0 131.75
December 28, 2017 133.7 42000.0 4.0 4.0 131.75
Lot size: 6000.0.

SBIN Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 244.7 91386000.0 12253.0 13549.0 243.75
November 30, 2017 245.9 12270000.0 2640.0 2890.0 243.75
December 28, 2017 247.2 279000.0 74.0 88.0 243.75
Lot size: 3000.0.
Click here for backtesting results.

PFC-SBIN Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 97758.9941985
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 83070.3627187
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 72303.3161179
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 71551.2816212
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 67785.3848913