TCS - JSWENERGY Pair Analysis

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End-of-day divergence (Standardized residual) is 0.136.
Half life of pair is 15.7.
Real time (live) divergence is calculating using following formula:
[jswenergy_price - (0.0303 * tcs_price) - -0.135]/6.59

(where -0.135 is mean error and 6.59 is standard error)
Technical strength of TCS is 6.7. (Support & Resistance)
Technical strength of JSWENERGY is 4. (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 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 tcs-jswenergy.
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
January 25, 2018 2906.45 7292000.0 7670.0 8767.0 2918.2
February 22, 2018 2917.85 461500.0 785.0 1079.0 2918.2
March 28, 2018 2935.0 2750.0 2.0 2.0 2918.2
Lot size: 250.0.

JSWENERGY Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
January 25, 2018 89.55 40995500.0 1802.0 1998.0 89.3
Lot size: 8500.0.
Click here for backtesting results.

TCS-JSWENERGY Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 81677.966881
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 69420.4193062
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 43719.0417667
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 36707.9746244
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 28242.5599325