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AI Insights:
4 hours ago UpdatedFair Value Reasoning:
AZ-03 is one of the safest Democratic strongholds in Arizona (Cook PVI D+24). Incumbent Yassamin Ansari won decisively in 2024 and is scandal-free. The statistical probability of this district flipping in a midterm is negligible. A valuation of 99c reflects this certainty, with the remaining 1c accounting only for extreme tail risks (e.g., death or party switch).
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Divergence
Significant pricing divergence exists. The market price (91.5c) implies a ~91.5% win probability for Democrats, whereas mainstream political analysis (e.g., Cook Political Report) rates AZ-03 as a 'Safe Democrat' (D+24) seat with a true probability near 99.9%. This 8% gap is not based on election risk but purely on liquidity premiums and the cost of locking capital until November.