SHREECEM - ULTRACEMCO Pair Analysis

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End-of-day divergence (Standardized residual) is -0.389.
Half life of pair is 4.39.
Real time (live) divergence is calculating using following formula:
[ultracemco_price - (0.243 * shreecem_price) - 1.75]/122

(where 1.75 is mean error and 122 is standard error)
Technical strength of SHREECEM is 6.5. (Support & Resistance)
Technical strength of ULTRACEMCO is 6.5. (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 shreecem-ultracemco.
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

SHREECEM Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 17015.4 65250.0 304.0 316.0 16999.85
May 31, 2018 17126.6 4150.0 60.0 62.0 16999.85
Lot size: 50.0.

ULTRACEMCO Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 26, 2018 4090.7 1912200.0 2205.0 2667.0 4080.9
May 31, 2018 4107.0 112000.0 388.0 569.0 4080.9
Lot size: 200.0.
Click here for backtesting results.

SHREECEM-ULTRACEMCO Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 50747.3273238
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 38162.3078469
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 21190.4411778
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 4399.84539624
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 3374.1852789