RELIANCE - HCLTECH Pair Analysis

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End-of-day divergence (Standardized residual) is -2.04.
Half life of pair is 19.4.
Real time (live) divergence is calculating using following formula:
[hcltech_price - (0.375 * reliance_price) - 7.92]/57.4

(where 7.92 is mean error and 57.4 is standard error)
Technical strength of RELIANCE is 7.1. (Support & Resistance)
Technical strength of HCLTECH is 6.1. (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 reliance-hcltech.
Analyse any other pair:

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

Charts

RELIANCE Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
August 27, 2020 2136.7 38634520.0 77613.0 77613.0 2126.45
September 24, 2020 2141.15 568630.0 1946.0 1946.0 2126.45
October 29, 2020 2148.15 55550.0 115.0 115.0 2126.45
Lot size: 505.

HCLTECH Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
August 27, 2020 691.8 16545200.0 5866.0 5866.0 688.4
September 24, 2020 692.4 100800.0 53.0 53.0 688.4
October 29, 2020 688.85 4200.0 3.0 3.0 688.4
Lot size: 1400.
Click here for backtesting results.

RELIANCE-HCLTECH Analysis with different time frames and thresholds

Time Frame 1year, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 95256.6188446
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 84943.717366
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 79028.7508177
Time Frame 1year, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 74756.6607494
Time Frame 6months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 72425.8215682

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