WIPRO - HEXAWARE Pair Analysis

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End-of-day divergence (Standardized residual) is 0.549.
Half life of pair is 28.5.
Real time (live) divergence is calculating using following formula:
[hexaware_price - (1.02 * wipro_price) - -0.422]/29.9

(where -0.422 is mean error and 29.9 is standard error)
Technical strength of WIPRO is 8.1. (Support & Resistance)
Technical strength of HEXAWARE is 5.9. (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-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
January 25, 2018 328.4 40269600.0 2902.0 4455.0 328.95
February 22, 2018 323.7 5220000.0 469.0 1838.0 328.95
March 28, 2018 327.65 40800.0 3.0 3.0 328.95
Lot size: 2400.0.

HEXAWARE Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
January 25, 2018 351.65 3564000.0 884.0 898.0 350.4
February 22, 2018 348.65 474000.0 77.0 78.0 350.4
March 28, 2018 348.75 21000.0 1.0 2.0 350.4
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