HAVELLS - MARICO Pair Analysis

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End-of-day divergence (Standardized residual) is -0.265.
Half life of pair is 7.39.
Real time (live) divergence is calculating using following formula:
[marico_price - (0.6 * havells_price) - 0.836]/20.1

(where 0.836 is mean error and 20.1 is standard error)
Technical strength of HAVELLS is 6.1. (Support & Resistance)
Technical strength of MARICO is 5.6. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.0. And exit positions when divergence becomes (+/-)0.0.
Stop Loss: Put your stop loss when divergence becomes more than 2.5 or less than -2.5. 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 havells-marico.
Analyse any other pair:

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

Charts

HAVELLS Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
July 30, 2020 582.95 5274000.0 1246.0 1246.0 580.25
August 27, 2020 583.45 46000.0 15.0 15.0 580.25
September 24, 2020 578.5 1000.0 0.0 0.0 580.25
Lot size: 1000.

MARICO Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
July 30, 2020 344.65 11658000.0 1473.0 1473.0 343.6
August 27, 2020 345.15 108000.0 18.0 18.0 343.6
September 24, 2020 345.7 0.0 0.0 0.0 343.6
Lot size: 1300.
Click here for backtesting results.

HAVELLS-MARICO Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 92768.3205376
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 71465.7843718
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 66477.2018806
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 66253.5156259
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 66182.4925986

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