Charter Ranks 93rd in $940M Trading Surge as High-Volume Strategy Outperforms Benchmark by 137.53%

Charter Communications (CHTR) saw a 1.62% rise in trading on August 5, 2025, with a daily trading volume of $0.94 billion—a 34.66% increase from the previous day. The stock ranked 93rd in overall trading activity. The movement follows a regulatory investigation into potential securities fraud by Pomerantz Law Firm, which could introduce short-term volatility for the cable and broadband provider. Investors are advised to monitor legal developments that might impact investor confidence and corporate governance perceptions.

A backtesting analysis of a high-volume trading strategy revealed significant outperformance: purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to present. This exceeded the benchmark return of 29.18% by 137.53%. The results highlight the influence of liquidity concentration in volatile markets, where high-liquidity stocks exhibit amplified price movements driven by sustained investor demand and market momentum.

The strategy’s success underscores the role of trading volume as a proxy for market participation intensity. However, investors must balance volume-based approaches with broader fundamental and macroeconomic considerations. For Charter, the legal scrutiny adds a layer of uncertainty that could temporarily overshadow liquidity-driven performance trends in the near term.

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