Sports betting and the Black-Litterman model: a new portfolio-management perspective

This paper transfers and adapts the Black-Litterman portfolio management model and its subsequent generalizations to the characteristics and specificities of assets quoted on sports betting markets. The results show that these assets are suitable for the application of portfolio management models wi...

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Detalles Bibliográficos
Autores: Abinzano Guillén, María Isabel, Campión Arrastia, María Jesús, Muga Caperos, Luis Fernando, Raventós Pujol, Armajac
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2021
País:España
Institución:Universidad Pública de Navarra
Repositorio:Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
OAI Identifier:oai:academica-e.unavarra.es:2454/50229
Acceso en línea:https://hdl.handle.net/2454/50229
Access Level:acceso abierto
Palabra clave:Betting exchanges
Market efficiency
Portfolio management
Descripción
Sumario:This paper transfers and adapts the Black-Litterman portfolio management model and its subsequent generalizations to the characteristics and specificities of assets quoted on sports betting markets. The results show that these assets are suitable for the application of portfolio management models with possible inclusion of investors' opinions. Information based on the variability of market prices and the attention received by NBA teams in Google Trends is successfully used to simulate the opinions expressed by a hypothetical portfolio manager. Furthermore, this makes these assets suitable for inclusion in portfolios in which managers are seeking returns uncorrelated with other assets.