Avidity Biosciences Surges 26% on 877% Volume Spike to 121st Most Traded as High-Volume Stocks Outperform with 166% Returns

On August 6, 2025, Avidity Biosciences (RNA) surged 26.14% amid a sharp rise in trading activity. The stock generated $800 million in volume, marking an 877.55% increase from the previous day and securing its position as the 121st most traded equity. The spike in liquidity highlights renewed institutional and retail interest in the biotech firm's RNA-based therapeutic pipeline.

Backtested data reveals that strategies focusing on high-volume stocks demonstrate significant short-term potential. A strategy purchasing the top 500 stocks by daily trading volume and holding for one day delivered a 166.71% cumulative return since 2022, far exceeding the 29.18% benchmark. This outperformance underscores the advantage of liquidity concentration in volatile markets, where rapid price discovery creates exploitable momentum patterns.

The results suggest that Avidity's recent surge aligns with broader market dynamics favoring liquid assets. High-volume equities tend to exhibit tighter bid-ask spreads and reduced slippage, enabling more efficient execution of short-term strategies. This liquidity premium becomes particularly pronounced during periods of macroeconomic uncertainty, when capital flows prioritize tradable instruments over illiquid alternatives.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets.