TCS - ENGINERSIN Pair Analysis

home > strategies > pairs-trading
End-of-day divergence (Standardized residual) is 2.43.
Half life of pair is 8.95.
Real time (live) divergence is calculating using following formula:
[enginersin_price - (0.065 * tcs_price) - -0.182]/9.88

(where -0.182 is mean error and 9.88 is standard error)
Technical strength of TCS is 4.0. (Support & Resistance)
Technical strength of ENGINERSIN is 7.1. (Support & Resistance)
Recommendation
You need to register and login with techpaisa to view detailed recommendations.
Entry Criterion: Take positions when divergence becomes (+/-)1.5. 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 tcs-enginersin.
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

TCS Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 2556.1 6898500.0 5317.0 5953.0 2545.6
January 25, 2018 2561.45 86250.0 129.0 131.0 2545.6
February 22, 2018 2566.6 1500.0 2.0 2.0 2545.6
Lot size: 250.0.

ENGINERSIN Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 188.55 13226500.0 1034.0 1121.0 189.3
January 25, 2018 189.55 493500.0 8.0 8.0 189.3
Lot size: 3500.0.
Click here for backtesting results.

TCS-ENGINERSIN Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 71660.0531186
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 38468.0269213
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 6447.24560961