CRH Slides to 210th in Trading Activity as High-Volume Stocks Fuel 166.71% Strategy Gains

On August 11, 2025, CRH (CRH) closed with a 1.72% decline, trading at a daily volume of $480 million, a 42.6% drop from the prior day's activity. The stock ranked 210th in trading activity among listed equities, reflecting reduced liquidity concentration in the short term.

The backtested strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% cumulative return between 2022 and the present, significantly outperforming the benchmark index's 29.18% gain. This 137.53% outperformance highlights the potential of liquidity-driven approaches in volatile markets, where high-volume stocks tend to amplify market movements through concentrated trading activity.

Analysts note that liquidity concentration plays a critical role in short-term performance, particularly when market conditions are turbulent. Stocks with elevated trading volumes often exhibit sharper price responses to macroeconomic signals or sector-specific catalysts, creating opportunities for momentum-based strategies. However, the recent drop in CRH's trading volume suggests temporary disengagement from such dynamics, potentially limiting its responsiveness to broader market shifts.

Historical case studies, including Newmont and McKesson, demonstrated that the strategy's principles can translate to tangible gains when applied to individual equities. While CRH's recent performance does not align with the strategy's parameters, the broader framework underscores the importance of monitoring liquidity trends as a proxy for market sentiment and institutional positioning.

The strategy's 166.71% return from 2022 to the present, compared to the benchmark's 29.18%, underscores the effectiveness of liquidity concentration in driving short-term returns. This approach, particularly in volatile markets, has shown consistent applicability across diverse stocks, emphasizing the role of trading volume as a key indicator of market activity and potential price momentum.