February 2026 Watchlist – 2 Strong NSE Pair Trading Opportunities Identified by QuantPair

Published: February 1, 2026 – QuantPair Team

Every month we scan hundreds of NSE pairs using our cointegration and mean-reversion engine. For February 2026 we have identified two very strong setups that meet our strict filters: robust ADF stationarity, meaningful Z-score divergence, high correlation, and F&O liquidity for practical beta-neutral execution.

These are not random picks — they come directly from the tool’s daily post-5 PM refresh. Login is quick and free to see full charts, live Z-scores, and lot/margin calculations.

Pair 1: AUROPHARMA vs SUNPHARMA (Pharma Sector)

Pair	Sector	Entry ADF	Current ADF	Action	Int%	Entry Z	Current Z
AUROPHARMA vs SUNPHARMA	Pharma	-4.89	-4.89	BUY AUROPHARMA ×550 SELL SUNPHARMA ×350	36.6%	2.23σ	-2.36σ

Why this pair stands out:

• Very strong ADF statistic (-4.89) — indicates excellent stationarity and high mean-reversion potential.
• Z-score has moved from +2.23σ (entry) to -2.36σ — clear divergence and now a long signal on AUROPHARMA.
• Beta hedge calculated at 8.974 → practical cash-market adjustment is BUY 161 shares of SUNPHARMA to neutralize.
• Pharma sector peers with solid historical correlation — classic mean-reversion setup.
• Estimated margin ~₹2.38L for the hedged position (1 lot each side).

Full Z-score history chart (200 days) and live beta-neutral calculator available after login.

Pair 2: POWERGRID vs TATAPOWER (Power Sector)

Pair	Sector	Entry ADF	Current ADF	Action	Int%	Entry Z	Current Z
POWERGRID vs TATAPOWER	Power	-2.85	-4.28	BUY POWERGRID ×1900 SELL TATAPOWER ×1450	33.9%	-3.30σ	-2.38σ

Why this pair stands out:

• Extremely strong current ADF (-4.28) — among the best stationarity readings we’ve seen this month.
• Z-score at entry was -3.30σ, now improved to -2.38σ — still a clear long signal on POWERGRID.
• Beta hedge at 8.954 → cash-market adjustment is BUY 161 shares of TATAPOWER.
• Power sector utilities with high correlation — ideal for market-neutral plays.
• Estimated margin ~₹2.85L for the hedged position (1 lot each side).

200-day Z-score history chart and full beta-neutral calculator inside the tool after login.

Why These Pairs Were Selected

We filter for:

• ADF < -2.5 (strong stationarity)
• Z-score divergence outside ±2σ
• High historical correlation
• F&O liquidity for realistic sizing
• Sector diversity to spread risk

Both pairs meet these criteria and show clean mean-reversion potential based on 200-day data.

Important Disclaimer

Pair trading involves significant risk of loss. This content is educational only. QuantPair is not SEBI-registered and does not provide financial advice. Past performance is not indicative of future results. Always consult a qualified advisor and trade at your own risk.

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Happy trading!
QuantPair Team