Thanks.
I do run my own excel sheet. Correlation can be done in excel easily. Its the co-integration part which takes time. Co-integration can be calculated by 2-3 different methods, specifically ADF test ( Augmented Dicky-Fueller Test ) or by Johansons Test and using OLS ( Ordinary Least Square ) as well.
Although the theortical papers and books tell us that co-integration is a must, it actually is a hindrance while doing pairs trading. I had run Co-integration test on the entire F&O universe ( well almost the entire F&O) and came up with no pairs which were fully integrated. Hence i do not use co-integration. I rarely look at correlation as well. I ll explain it in future posts. Hope to see you around here more
and learn from your experiences as well