The Least Fun Way to Predict a Super Bowl Winner
From Elizabeth Stanton at Bloomberg:
The New England Patriots will win the Super Bowl by at least three points even though the New York Giants have the appeal of “a cocktail party stock,” according to a quantitative money management firm that’s correctly picked the team covering the point spread for eight consecutive years.
Analytic Investors LLC in Los Angeles has documented a tendency on the part of Super Bowl bettors to overestimate the chances of the team that rewarded them more during the regular season — the team with the higher alpha, in investment parlance. In 2008, that was the favored Patriots, who lost to the Giants 17-14. This year, it’s New York.
“Everyone thinks the Giants are rolling right now, a lot of people in my office even,” said Matthew Robinson, a portfolio analyst for global and Japanese equities at Analytic and the author of this year’s analysis. “They like the Giants, but they have faith in the model as well.”
At least this is less ridiculous than the Super Bowl Indicator.