SAIL - OIL Pair Analysis

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End-of-day divergence (Standardized residual) is 0.854.
Half life of pair is 55.0.
Real time (live) divergence is calculating using following formula:
[oil_price - (5.16 * sail_price) - 1.68]/40

(where 1.68 is mean error and 40 is standard error)
Technical strength of SAIL is 5.7. (Support & Resistance)
Technical strength of OIL is 5.1. (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 sail-oil.
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

SAIL Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 58.9 59664000.0 292.0 342.0 59.05
November 30, 2017 59.15 7548000.0 121.0 162.0 59.05
December 28, 2017 60.0 72000.0 3.0 3.0 59.05
Lot size: 12000.0.

OIL Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 340.9 2429152.0 97.0 98.0 340.6
November 30, 2017 342.2 142758.0 16.0 16.0 340.6
Lot size: 2266.0.
Click here for backtesting results.

SAIL-OIL Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 100084.12912
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 96941.9650162
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 78330.5426163
Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 68818.7773474
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 65446.4466783