One year co-relation between Heromotoco and Bajaj Auto is above 80%.
I will open this trade in coming week by going long on Heromotoco September future and short Bajaj Auto september future at price ratio of 1.11 - 1.09 with Stop loss placed at 1.06 for target of 1.25+
Heromotoco (SEP FUTURE Lot size 125) : 1935
Bajaj-Auto (SEP FUTURE Lot size 125) : 1728
*~Outlflow(`1.0 lac), Time horizon - 30 days, Expected return 10-12%
Disclosure/Disclaimer and FAQ
*If you have any questions, queries or need more explanation, leave comments below.
*If you have any questions, queries or need more explanation, leave comments below.
This strategy is giving us 4500 Rs profit as of now...Enjoy!!
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