ADANIPORTS - FEDERALBNK Pair Analysis

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End-of-day divergence (Standardized residual) is -2.24.
Half life of pair is 7.45.
Real time (live) divergence is calculating using following formula:
[federalbnk_price - (0.233 * adaniports_price) - -0.907]/7.25

(where -0.907 is mean error and 7.25 is standard error)
Technical strength of ADANIPORTS is 3.1. (Support & Resistance)
Technical strength of FEDERALBNK is 3.3. (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 adaniports-federalbnk.
Analyse any other pair:

How to choose pairs?
Choose stocks from same sector/subsector.
Use stock with large market capitalization as first stock.

Charts

ADANIPORTS Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 30, 2020 245.85 26380000.0 3212.0 3212.0 244.8
May 28, 2020 247.0 107500.0 17.0 17.0 244.8
June 25, 2020 239.55 2500.0 0.0 0.0 244.8
Lot size: 2500.

FEDERALBNK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
April 30, 2020 39.8 34111000.0 1810.0 1810.0 39.9
May 28, 2020 39.85 455000.0 30.0 30.0 39.9
June 25, 2020 41.6 14000.0 0.0 0.0 39.9
Lot size: 7000.
Click here for backtesting results.

ADANIPORTS-FEDERALBNK Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 103207.339449
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 75625.6978282
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 75604.5232967
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 69145.3376553
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 66925.8232215

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