TECHM - BANKBARODA Pair Analysis

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End-of-day divergence (Standardized residual) is -2.58.
Half life of pair is 10.
Real time (live) divergence is calculating using following formula:
[bankbaroda_price - (0.311 * techm_price) - 1.48]/19.1

(where 1.48 is mean error and 19.1 is standard error)
Technical strength of TECHM is 7.1. (Support & Resistance)
Technical strength of BANKBARODA is 2. (Support & Resistance)
Recommendation
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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 2.0 or less than -2.0. 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 techm-bankbaroda.
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

TECHM Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 28, 2018 623.4 11065200.0 4959.0 5199.0 621.45
April 26, 2018 625.75 80400.0 59.0 59.0 621.45
Lot size: 1200.0.

BANKBARODA Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 28, 2018 146.6 58300000.0 5533.0 5998.0 145.55
April 26, 2018 147.5 368000.0 77.0 78.0 145.55
Lot size: 4000.0.
Click here for backtesting results.

TECHM-BANKBARODA Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 76818.0041237
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 47630.6961068
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 46799.0153878
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 40368.5852304
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 37376.6454295