SUNPHARMA - UPL Pair Analysis

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End-of-day divergence (Standardized residual) is -1.93.
Half life of pair is 4.05.
Real time (live) divergence is calculating using following formula:
[upl_price - (1.34 * sunpharma_price) - 0.364]/28.6

(where 0.364 is mean error and 28.6 is standard error)
Technical strength of SUNPHARMA is 8.25. (Support & Resistance)
Technical strength of UPL is 1.7. (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 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 sunpharma-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

SUNPHARMA Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
November 28, 2019 451.6 52215900.0 17117.0 17117.0 452.1
December 26, 2019 454.0 12445400.0 4379.0 4379.0 452.1
January 30, 2020 456.25 53750.0 22.0 22.0 452.1
Lot size: 1100.

UPL Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
November 28, 2019 534.6 12805200.0 3114.0 3114.0 533.5
December 26, 2019 536.8 3020400.0 1133.0 1133.0 533.5
January 30, 2020 542.75 10800.0 2.0 2.0 533.5
Lot size: 900.
Click here for backtesting results.

SUNPHARMA-UPL Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 22098.7255666

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