Liquidity-Driven Strategy Outperforms with 166.71% Return as Top 500 High-Volume Stocks Rank 62nd in Daily Trading Activity

On August 11, 2025, The stock traded with a volume of 1.13 billion shares, ranking 62nd in daily trading activity. The share price rose 0.96% during the session, outperforming broader market trends observed in high-liquidity environments. This performance aligns with a broader strategy emphasizing liquidity concentration, where short-term returns are driven by trading volume dynamics rather than fundamental shifts.

A backtested strategy focusing on the top 500 stocks by daily trading volume and holding positions for one day has demonstrated exceptional results. From 2022 to the present, this approach generated a 166.71% return, significantly exceeding the benchmark index’s 29.18% gain. The strategy’s success underscores the critical role of liquidity in capturing short-term momentum, particularly in volatile markets where high-volume stocks exhibit pronounced price swings.

The analysis highlights how liquidity concentration creates asymmetric risk-reward scenarios. Stocks with elevated trading volumes, such as those in the strategy, benefit from aggregated investor demand, amplifying price movements during macroeconomic shifts. This phenomenon reflects the interplay between market volatility and liquidity-driven opportunities, where short-term positioning can capitalize on transient imbalances in supply and demand.

The backtest results confirm the efficacy of liquidity-focused strategies. By holding the top 500 high-volume stocks for one day, the approach achieved a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This outcome reinforces the importance of liquidity concentration in driving short-term performance, particularly in markets characterized by rapid shifts in investor sentiment and macroeconomic conditions.