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Kennedy-Wilson Holdings Inc Risk Points versus Real Estate




Kennedy-Wilson Holdings Inc (NYSE:KW) Risk Points versus Real Estate (XLRE)

Date Published:


PREFACE
This is a scatter plot analysis of the critical risk points from the option market for Kennedy-Wilson Holdings Inc (NYSE:KW) compared to its own past and the Real Estate ETF. In order to examine the forward looking risk for Kennedy-Wilson Holdings Inc (NYSE:KW) the next 30-days, we must look to the option market.

Now, before we dive into the analysis on KW, we make one critical note since we're talking about options:



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In the "Why This Matters" section at the end of this article on Kennedy-Wilson Holdings Inc (NYSE:KW) , we're going to take a step back and show in great specificity that there is actually a lot less "luck" in successful option trading than many people know.

But that's at the end, now let's jump back into the risk point charting and number crunching for Kennedy-Wilson Holdings Inc (NYSE:KW) . We start by noting that KW is in the real estate sector which means along with some other industries we also compare the company to the closest match we could find, which was the Real Estate ETF (XLRE) as a proxy for Kennedy-Wilson Holdings Inc.

We have highlighted the IV30® for XLRE and for KW in the table below.


SNAPSHOT SUMMARY
CONTEXT: THE INDICES
S&P 500 (SPY) IV30     11.15%
Nasdaq 100 (QQQ) IV30     12.44%
Real Estate ETF (XLRE) IV30     13.75%
Biotech (IBB) IV30     18.5%


Kennedy-Wilson Holdings Inc (NYSE:KW)
KW 52 Week Low IV30     18.49%
KW Current IV30     27.69%
KW 52 Week High IV30     42.15%

KW Current HV30     20.06%

Kennedy-Wilson Holdings Inc Implied Risk Scatter Plot
(a new risk chart, built for option traders)



Scatter Plot Risk Legend
The blue point is the current 30-day implied volatility for Kennedy-Wilson Holdings Inc.
The black point is the current 30-day implied volatility for the Real Estate ETF (XLRE).
The red point is the 52 week low in IV30® for Kennedy-Wilson Holdings Inc.
The green point is the 52 week high in IV30® for Kennedy-Wilson Holdings Inc.

The various other scatter plot points in the middle give us risk context outside of the real estate sector.

The IV30® is the risk reflected by the option market in the stock price for the next 30 calendar days.

* We can see that the risk as reflected by the option market for the next 30-days for Kennedy-Wilson Holdings Inc is above all the indices we have charted including the Real Estate ETF (XLRE).

* We can further see that the current IV30 for Kennedy-Wilson Holdings Inc of 27.69% is closer to the annual low of 18.49% than the annual high of 42.15%. Simply stated, this means that the option market is pricing less risk than the average over the past year.

* For some context, we note that the annual range in IV30® for the Real Estate ETF is between [11.22%, 25.23%] while Kennedy-Wilson Holdings Inc has had a range of [18.49%, 42.15%].

Get this same analysis on any ticker here:


A New Kind of Risk Point Chart
This is chart was developed for the trader. It allows us to easily see where the forward looking risk for Kennedy-Wilson Holdings Inc (NYSE:KW) lies relative to the last year, and the various major stock groupings and the Real Estate sector without using time series data, which can confuse the information.