HCLTECH - ICICIBANK Pair Analysis

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End-of-day divergence (Standardized residual) is 3.26.
Half life of pair is 14.
Real time (live) divergence is calculating using following formula:
[icicibank_price - (0.775 * hcltech_price) - -0.229]/36.8

(where -0.229 is mean error and 36.8 is standard error)
Technical strength of HCLTECH is 2.2. (Support & Resistance)
Technical strength of ICICIBANK is 6.9. (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

HCLTECH Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 26, 2019 538.2 24270400.0 2305.0 2305.0 536.35
January 30, 2020 540.0 425600.0 92.0 92.0 536.35
February 27, 2020 541.0 2800.0 1.0 1.0 536.35
Lot size: 1400.

ICICIBANK Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
December 26, 2019 537.1 105928625.0 18380.0 18380.0 535.35
January 30, 2020 539.65 3775750.0 947.0 947.0 535.35
February 27, 2020 541.1 210375.0 47.0 47.0 535.35
Lot size: 1375.
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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