WIPRO - HEXAWARE Pair Analysis

home > strategies > pairs-trading
End-of-day divergence (Standardized residual) is 2.68.
Half life of pair is 7.61.
Real time (live) divergence is calculating using following formula:
[hexaware_price - (0.946 * wipro_price) - -0.2]/19.2

(where -0.2 is mean error and 19.2 is standard error)
Technical strength of WIPRO is 6.0. (Support & Resistance)
Technical strength of HEXAWARE is 7.7. (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
November 30, 2017 295.2 34236000.0 1555.0 2009.0 295.15
December 28, 2017 295.7 2217600.0 124.0 487.0 295.15
Lot size: 2400.0.

HEXAWARE Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
November 30, 2017 331.95 2628000.0 798.0 843.0 330.5
December 28, 2017 333.7 126000.0 7.0 8.0 330.5
Lot size: 3000.0.
Click here for backtesting results.

WIPRO-HEXAWARE Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 24805.6439453
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 21314.3280703
Time Frame 1month, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 21176.9337016
Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 20840.8635025
Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 20067.0976473