WIPRO - BANKBARODA Pair Analysis

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End-of-day divergence (Standardized residual) is -0.512.
Half life of pair is 35.3.
Real time (live) divergence is calculating using following formula:
[bankbaroda_price - (0.606 * wipro_price) - 1.6]/23.2

(where 1.6 is mean error and 23.2 is standard error)
Technical strength of WIPRO is 4.9. (Support & Resistance)
Technical strength of BANKBARODA is 4. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.5. 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 wipro-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

WIPRO Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 285.2 40663200.0 1519.0 1669.0 289.7
January 25, 2018 285.85 823200.0 81.0 125.0 289.7
February 22, 2018 286.7 12000.0 1.0 1.0 289.7
Lot size: 2400.0.

BANKBARODA Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 28, 2017 165.85 46914000.0 3916.0 4200.0 165.25
January 25, 2018 166.75 928000.0 125.0 125.0 165.25
February 22, 2018 168.2 20000.0 1.0 1.0 165.25
Lot size: 3500.0.
Click here for backtesting results.

WIPRO-BANKBARODA Analysis with different time frames and thresholds

Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 121237.35025
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 114822.342063
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 111843.984373
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 109914.056397
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 108804.483081