Kratos Defense Surges 3.43% on $590 Million Volume Ranks 182nd in US Liquidity Amid Institutional Interest

Kratos Defense & Security Solutions (KTOS) rose 3.43% on October 7, 2025, with a trading volume of $590 million, ranking 182nd among U.S. stocks by daily liquidity. The security technology firm’s performance was driven by renewed institutional interest in its defense contract pipeline, though no immediate catalysts such as earnings releases or major contract awards were reported.

A back-test of a high-volume trading strategy—purchasing the 500 most actively traded U.S. stocks daily and holding for one trading day from January 3, 2022, to October 7, 2025—requires clarification on key parameters. These include universe scope (e.g., NYSE/NASDAQ-listed equities), entry/exit price conventions (close-to-close vs. open-to-open), weighting schemes (equal-weight vs. volume-proportional), and transaction cost assumptions. The strategy’s dynamic rebalancing and daily turnover necessitate granular data processing to calculate cumulative returns, volatility, and risk-adjusted performance metrics.

Implementation steps involve compiling daily volume ranks, constructing equal-weighted portfolios, and aggregating price returns. A frictionless back-test will first be conducted before incorporating real-world trading frictions. Final results will include cumulative performance charts and statistical benchmarks such as CAGR, maximum drawdown, and Sharpe ratio for evaluation.