POWERGRID - YESBANK Pair Analysis

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End-of-day divergence (Standardized residual) is 0.609.
Half life of pair is 28.
Real time (live) divergence is calculating using following formula:
[yesbank_price - (1.51 * powergrid_price) - -0.525]/26.3

(where -0.525 is mean error and 26.3 is standard error)
Technical strength of POWERGRID is 1.7. (Support & Resistance)
Technical strength of YESBANK is 4.7. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.0. And exit positions when divergence becomes (+/-)0.0.
Stop Loss: Put your stop loss when divergence becomes more than 2.5 or less than -2.5. 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 powergrid-yesbank.
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

POWERGRID Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 199.7 23540000.0 2147.0 2386.0 198.85
January 25, 2018 200.2 676000.0 137.0 141.0 198.85
February 22, 2018 201.7 36000.0 1.0 1.0 198.85
Lot size: 4000.0.

YESBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 316.2 55580000.0 15347.0 16972.0 315.9
January 25, 2018 318.05 1361500.0 729.0 810.0 315.9
February 22, 2018 319.45 68250.0 23.0 23.0 315.9
Lot size: 1750.0.
Click here for backtesting results.

POWERGRID-YESBANK Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 39109.6120044
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 33967.9170313
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 31985.3702686
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 19069.416825
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 14550.6388872