SHREECEM - ULTRACEMCO Pair Analysis

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End-of-day divergence (Standardized residual) is -0.702.
Half life of pair is 3.79.
Real time (live) divergence is calculating using following formula:
[ultracemco_price - (0.238 * shreecem_price) - 4.16]/113

(where 4.16 is mean error and 113 is standard error)
Technical strength of SHREECEM is 5. (Support & Resistance)
Technical strength of ULTRACEMCO is 3.1. (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 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
January 25, 2018 18419.7 47150.0 224.0 229.0 18354.6
February 22, 2018 18503.7 7100.0 56.0 56.0 18354.6
Lot size: 50.0.

ULTRACEMCO Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
January 25, 2018 4314.85 1649200.0 3075.0 3419.0 4300.0
February 22, 2018 4337.05 133600.0 389.0 426.0 4300.0
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 56266.6816226
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 43681.6621457
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 27809.9275227
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 14765.6179417
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 10630.4142456