SHREECEM - ULTRACEMCO Pair Analysis

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End-of-day divergence (Standardized residual) is -1.12.
Half life of pair is 18.5.
Real time (live) divergence is calculating using following formula:
[ultracemco_price - (0.192 * shreecem_price) - 12.4]/183

(where 12.4 is mean error and 183 is standard error)
Technical strength of SHREECEM is 3.5. (Support & Resistance)
Technical strength of ULTRACEMCO is 3.1. (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 shreecem-ultracemco.
Analyse any other pair:

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

Charts

SHREECEM Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
February 27, 2020 23594.95 97550.0 1468.0 1468.0 23572.05
March 26, 2020 23690.05 79600.0 1410.0 1410.0 23572.05
April 30, 2020 24340.5 450.0 0.0 0.0 23572.05
Lot size: 50.

ULTRACEMCO Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
February 27, 2020 4353.2 1670800.0 5271.0 5271.0 4344.0
March 26, 2020 4370.05 1016400.0 3896.0 3896.0 4344.0
April 30, 2020 4372.95 3400.0 14.0 14.0 4344.0
Lot size: 200.
Click here for backtesting results.

SHREECEM-ULTRACEMCO Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 46876.9562579
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 34222.0393395
Time Frame 6months, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 32181.5613085
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 21508.9213907
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 20472.799098

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