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Strategy Guide

Correlated Events

Relative value · Macro / Politics / Sports · High risk

What does it do?

Trade two events that usually move together but whose relationship the market prices inconsistently.

Why might it work?

Returns come from mispriced conditional probabilities or correlations — not from an outright directional call on either event.

Simplified example

Event A fair value60%
Event B market pricedeviates from A link
Combolong A + hedge B
Key metriccorrelation & hedge ratio

Strategy structure

Buythe underpriced correlated event
Hedgebuy NO on / sell the overpriced one
Signalconditional-probability / correlation model
Fitsmacro, policy, sports linkages

Main risks

Model riskCorrelation riskTail risk

The relationship is not fixed. Macro shocks, news or regime changes can invalidate historical correlation entirely.

Active signals
0

No open signals — the engine rescans every 60 seconds and surfaces opportunities automatically.

Model opinions, historical returns and community scores are no guarantee of results. Before trading, consider fees, liquidity, resolution rules, jurisdiction and your own risk tolerance.