TCS - INFRATEL Pair Analysis

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End-of-day divergence (Standardized residual) is -0.111.
Half life of pair is 8.97.
Real time (live) divergence is calculating using following formula:
[infratel_price - (0.113 * tcs_price) - 0.646]/24.6

(where 0.646 is mean error and 24.6 is standard error)
Technical strength of TCS is 2.6. (Support & Resistance)
Technical strength of INFRATEL is 5.88. (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 tcs-infratel.
Analyse any other pair:

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

Charts

TCS Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
November 28, 2019 2070.8 15808000.0 18371.0 18371.0 2071.7
December 26, 2019 2079.8 4016750.0 6724.0 6724.0 2071.7
January 30, 2020 2083.7 31250.0 118.0 118.0 2071.7
Lot size: 250.

INFRATEL Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
November 28, 2019 232.05 14662000.0 3856.0 3856.0 232.0
December 26, 2019 229.3 1106000.0 508.0 508.0 232.0
January 30, 2020 225.2 34000.0 4.0 4.0 232.0
Lot size: 2000.
Click here for backtesting results.

TCS-INFRATEL Analysis with different time frames and thresholds

Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 45450.4234467
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 39703.6745602
Time Frame 3months, Entry Threshold 2.5, Stop Loss Threshold 3, Total Profit 32473.0720894
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 24598.8675676
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 12556.0825728

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