WIPRO - HEXAWARE Pair Analysis

home > strategies > pairs-trading
End-of-day divergence (Standardized residual) is 0.00377.
Half life of pair is 13.5.
Real time (live) divergence is calculating using following formula:
[hexaware_price - (0.43 * wipro_price) - 0.0438]/9.74

(where 0.0438 is mean error and 9.74 is standard error)
Technical strength of WIPRO is 7.9. (Support & Resistance)
Technical strength of HEXAWARE is 4.5. (Support & Resistance)
Recommendation
You need to register and login with techpaisa to view detailed recommendations.
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-hexaware.
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
March 30, 2017 504.75 5912400.0 1513.0 1741.0 504.0
April 27, 2017 507.0 1098000.0 774.0 933.0 504.0
Lot size: 1200.0.

HEXAWARE Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
March 30, 2017 217.15 3351000.0 565.0 635.0 216.95
April 27, 2017 218.25 771000.0 245.0 294.0 216.95
May 25, 2017 218.95 6000.0 2.0 2.0 216.95
Lot size: 3000.0.
Click here for backtesting results.

WIPRO-HEXAWARE Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 6774.16832583
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 4629.64782817
Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 3423.51948895
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 165.130677845