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End-of-day divergence (Standardized residual) is -0.622.
Half life of pair is 50.7.
Real time (live) divergence is calculating using following formula:
[lupin_price - (1.93 * sunpharma_price) - -18.1]/152

(where -18.1 is mean error and 152 is standard error)
Technical strength of SUNPHARMA is 5.3. (Support & Resistance)
Technical strength of LUPIN is 4.5. (Support & Resistance)
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Entry Criterion: Take positions when divergence becomes (+/-)2. And exit positions when divergence becomes (+/-)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.
Analyse any other pair:

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


Futures are not traded in SUNPHARMA. Futures are not traded in LUPIN.
Click here for backtesting results.

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