POWERGRID - UPL Pair Analysis

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End-of-day divergence (Standardized residual) is 0.485.
Half life of pair is 6.55.
Real time (live) divergence is calculating using following formula:
[upl_price - (2.96 * powergrid_price) - 0.311]/31.6

(where 0.311 is mean error and 31.6 is standard error)
Technical strength of POWERGRID is 2.3. (Support & Resistance)
Technical strength of UPL is 5.1. (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 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 powergrid-upl.
Analyse any other pair:

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

Charts

POWERGRID Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
February 27, 2020 185.8 33220000.0 7105.0 7105.0 186.15
March 26, 2020 178.8 22136000.0 5884.0 5884.0 186.15
April 30, 2020 179.95 96000.0 2.0 2.0 186.15
Lot size: 4000.

UPL Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
February 27, 2020 567.2 6998400.0 7804.0 7804.0 566.35
March 26, 2020 569.75 7446600.0 5477.0 5477.0 566.35
April 30, 2020 572.5 38700.0 36.0 36.0 566.35
Lot size: 900.
Click here for backtesting results.

POWERGRID-UPL Analysis with different time frames and thresholds

Time Frame 6months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 55426.0202234
Time Frame 3months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 42512.4791582
Time Frame 1month, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 35359.9335911
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 26736.5340989
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 20523.1142542

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