HCLTECH - ICICIBANK Pair Analysis

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End-of-day divergence (Standardized residual) is -0.529.
Half life of pair is 169.
Real time (live) divergence is calculating using following formula:
[icicibank_price - (0.584 * hcltech_price) - 12]/83.5

(where 12 is mean error and 83.5 is standard error)
Technical strength of HCLTECH is 6.7. (Support & Resistance)
Technical strength of ICICIBANK is 7.1. (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 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-icicibank.
Analyse any other pair:

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

Charts

Futures are not traded in HCLTECH. Futures are not traded in ICICIBANK.
Click here for backtesting results.

HCLTECH-ICICIBANK Analysis with different time frames and thresholds

Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 153459.074701
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 147206.641844
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 117967.305042
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 112488.907905
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 106554.871504

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