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AI Insights:
03.12 10:34 UpdatedFair Value Reasoning:
Despite a lack of breaking news this week, the fundamentals for NY-22 remain robust. Incumbent Democrat John Mannion won decisively in 2024 in this D+4 district. Crucially, 2026 is a midterm election under a Republican presidency (Trump), a scenario that historically heavily favors the opposition party (Democrats). Mainstream analysts typically rate such seats as 'Safe Democrat,' implying a >90% probability. The current market price is significantly undervalued, reflecting capital inefficiency rather than a shift in election dynamics.
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Divergence
There is a significant divergence between market price and fundamentals. Based on a 'Safe Democrat' seat rating, the fair price should be >90c, whereas it is currently trading at 76.5c. This divergence is not driven by disagreement on the winner, but by structural market inefficiency—evidenced by the fact that even an 11% risk-free arbitrage gap (combined price 89c) remains unfilled by market capital.