HCLTECH - HDFCBANK Pair Analysis
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End-of-day divergence (Standardized residual) is 0.52.
Half life of pair is 26.7.
Real time (live) divergence is calculating using following formula:
[hdfcbank_price - (1.59 * hcltech_price) - 20.6]/129
(where 20.6 is mean error and 129 is standard error)
Technical strength of HCLTECH is 3.0. (Support & Resistance)
Technical strength of HDFCBANK is 4.5. (Support & Resistance)
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 hcltech-hdfcbank.
Half life of pair is 26.7.
Real time (live) divergence is calculating using following formula:
[hdfcbank_price - (1.59 * hcltech_price) - 20.6]/129
(where 20.6 is mean error and 129 is standard error)
Technical strength of HCLTECH is 3.0. (Support & Resistance)
Technical strength of HDFCBANK is 4.5. (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 hcltech-hdfcbank.
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How to choose pairs?
Choose stocks from same sector/subsector.Use stock with large market capitalization as first stock.
