Chubb Ranks 376th in Liquidity as Volatility-Fueled Strategy Generates 137 Excess Return from High-Volume Stocks

Chubb (CB) closed 0.72% higher on Aug. 8, 2025, with a trading volume of $260 million, marking a 38.96% drop from the previous day and ranking 376th in market liquidity. The stock’s 15-minute chart revealed the Relative Strength Index (RSI) hitting overbought territory while the KDJ indicator formed a death cross at 10:00 a.m. ET. These technical signals suggest rapid price acceleration beyond intrinsic value, with momentum indicators pointing to potential downward correction pressures despite the modest near-term gain.

Short-term liquidity patterns highlight the performance of high-volume stocks. A strategy of purchasing the top 500 most actively traded stocks and holding for one day generated a 166.71% return from 2022 through 2025, vastly outperforming the benchmark’s 29.18% gain. This 137.53% excess return underscores how liquidity concentration amplifies price movements, particularly during periods of heightened volatility when trading activity intensifies.

The backtest results confirm that liquidity-driven strategies benefit from market turbulence. High-volume stocks, when held for brief periods, capitalize on amplified price swings during volatile phases. This dynamic was evident in the strategy’s ability to capture momentum gains while mitigating exposure to prolonged directional risks, demonstrating the interplay between liquidity demand and short-term trading opportunities.