INFRATEL - CUMMINSIND Pair Analysis

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End-of-day divergence (Standardized residual) is -1.36.
Half life of pair is 9.57.
Real time (live) divergence is calculating using following formula:
[cumminsind_price - (2.08 * infratel_price) - 6.01]/67

(where 6.01 is mean error and 67 is standard error)
Technical strength of INFRATEL is 7.25. (Support & Resistance)
Technical strength of CUMMINSIND is 5.7. (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 infratel-cumminsind.
Analyse any other pair:

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

Charts

INFRATEL Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 25, 2020 223.3 9572000.0 3631.0 3631.0 223.25
July 30, 2020 222.2 114800.0 15.0 15.0 223.25
August 27, 2020 226.6 0.0 0.0 0.0 223.25
Lot size: 2000.

CUMMINSIND Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
June 25, 2020 379.3 1112400.0 1711.0 1711.0 378.95
July 30, 2020 376.0 51600.0 21.0 21.0 378.95
August 27, 2020 364.15 0.0 0.0 0.0 378.95
Lot size: 900.
Click here for backtesting results.

INFRATEL-CUMMINSIND Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 76074.7353972
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 75942.5885148
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 49191.2174297
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 47475.9449297
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 44776.5996244

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