VEDL - SAIL Pair Analysis

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End-of-day divergence (Standardized residual) is 0.643.
Half life of pair is 27.1.
Real time (live) divergence is calculating using following formula:
[sail_price - (0.176 * vedl_price) - 0.00337]/1.81

(where 0.00337 is mean error and 1.81 is standard error)
Technical strength of VEDL is 7.7. (Support & Resistance)
Technical strength of SAIL is 5.7. (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 vedl-sail.
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
October 26, 2017 327.45 46931500.0 1309.0 1380.0 327.95
November 30, 2017 326.25 3514000.0 119.0 121.0 327.95
December 28, 2017 327.05 91000.0 5.0 5.0 327.95
Lot size: 3500.0.

SAIL Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
October 26, 2017 58.9 59664000.0 292.0 342.0 59.05
November 30, 2017 59.15 7548000.0 121.0 162.0 59.05
December 28, 2017 60.0 72000.0 3.0 3.0 59.05
Lot size: 12000.0.
Click here for backtesting results.

VEDL-SAIL Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 47016.2946419
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 39050.4159708
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 9414.78785793