VEDL - RAMCOCEM Pair Analysis

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End-of-day divergence (Standardized residual) is 0.882.
Half life of pair is 3.92.
Real time (live) divergence is calculating using following formula:
[ramcocem_price - (2.2 * vedl_price) - 0.637]/24.7

(where 0.637 is mean error and 24.7 is standard error)
Technical strength of VEDL is 3.1. (Support & Resistance)
Technical strength of RAMCOCEM is 4. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)1.5. And exit positions when divergence becomes (+/-)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 vedl-ramcocem.
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

VEDL Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
November 30, 2017 314.05 40843250.0 7498.0 8985.0 312.9
December 28, 2017 315.55 2178750.0 588.0 688.0 312.9
January 25, 2018 316.05 134750.0 12.0 12.0 312.9
Lot size: 1750.0.

RAMCOCEM Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
November 30, 2017 711.6 599200.0 324.0 343.0 711.8
Lot size: 800.0.
Click here for backtesting results.

VEDL-RAMCOCEM Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 21616.2691089
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 19019.1894743
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 8264.45030413