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NCAA Tournament: Team to make National Championship - AI Odds Analysis

All Outcomes
Market Price
AI Fair Value
Value Edge
Arizona
YesNo
Duke
YesNo
Houston
YesNo
Purdue
YesNo
North Carolina
YesNo
UConn
YesNo
Kansas
YesNo
Kentucky
YesNo
Howard
YesNo
UMBC
YesNo
TCU
YesNo
Wisconsin
YesNo
Tennessee
YesNo
Michigan State
YesNo
Villanova
YesNo
UCF
YesNo
Alabama
YesNo
Penn
YesNo
BYU
YesNo
Louisville
YesNo
Queens University
YesNo
Texas Tech
YesNo
Vanderbilt
YesNo
Tennessee State
YesNo
Miami (Ohio)
YesNo
Lehigh
YesNo
North Dakota State
YesNo
Siena
YesNo
Michigan
YesNo
Furman
YesNo
Florida
YesNo
Saint Louis
YesNo
Texas A&M
YesNo
Missouri
YesNo
Iowa
YesNo
Prairie View A&M
YesNo
SMU
YesNo
Nebraska
YesNo
VCU
YesNo
Santa Clara
YesNo
LIU
YesNo
Utah State
YesNo
Clemson
YesNo
South Florida
YesNo
Ohio State
YesNo
Iowa State
YesNo
Akron
YesNo
Illinois
YesNo
McNeese
YesNo
Georgia
YesNo
Hawaii
YesNo
Northern Iowa
YesNo
Idaho
YesNo
Gonzaga
YesNo
Texas
YesNo
Arkansas
YesNo
Virginia
YesNo
High Point
YesNo
St. John’s
YesNo
Saint Mary’s
YesNo
Hofstra
YesNo
Cal Baptist
YesNo
Wright State
YesNo
Miami (FL)
YesNo
UCLA
YesNo
Troy
YesNo
NC State
YesNo
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AI Insights:

03.14 01:09 Updated
Fair Value Reasoning:
The current market pricing is extremely irrational. In the NCAA Tournament, only 2 teams make the National Championship, so the sum of all implied probabilities should be 200%. However, the market has roughly 60-70 teams priced around 50 cents (50%), resulting in a total implied probability of over 3000%. This indicates a broken or illiquid market with default pricing. For low-seeded teams like Howard or UMBC, the true probability of making the championship is near 0% (Fair Value < 1 cent). Even for top-tier contenders (e.g., Duke, UConn), the pre-tournament probability of reaching the finals is typically only 10-20% (10-20 cents).

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Divergence
Significant divergence exists. The market implies a 50% chance for every team to make the finals. In contrast, mainstream sports analytics models (KenPom, BPI) and betting odds reflect a heavy Pareto distribution: a few contenders have moderate probabilities (15-25%), while the vast majority of teams have near-zero probabilities (<1%).

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NCAA Tournament: Team to make National Championship - AI Odds Analysis