Freeport-McMoRan's $2.59B Surge to 29th in Liquidity Amid 9.46% Drop Boosts Strategy Returns by 166.71%

On July 30, 2025, Freeport-McMoRan (FCX) saw a trading volume of $2.59 billion, surging 263.76% from the previous day and ranking 29th in market liquidity. The stock closed down 9.46% amid sector-wide pressure.

Analysts noted the company’s liquidity surge aligns with broader market strategies prioritizing high-volume equities. A backtested approach targeting top 500 stocks by daily turnover demonstrated exceptional returns, generating 166.71% cumulative gains from 2022 to present. This outperformed benchmarks by 137.53% and achieved a 31.89% annualized return, underscoring the strategy’s efficacy in capturing short-term liquidity dynamics.

The methodology’s success stems from its focus on transient price movements, limiting exposure to prolonged volatility. By holding positions for single-day horizons, the strategy capitalizes on immediate sentiment shifts rather than long-term fundamentals. Stocks like PTC and Qorvo contributed significantly to returns through rapid trading activity, reflecting strong institutional demand for liquid assets during volatile periods.

Historical performance data reveals the approach’s consistency, with positive outcomes across multiple market cycles. However, experts caution that liquidity-driven strategies may struggle during periods of market illiquidity or structural shifts in trading behavior. Investors are advised to assess risk tolerance before adopting similar tactics.

The backtesting results indicate a 166.71% total return from 2022 to the present, surpassing the benchmark’s 29.18%. The strategy’s annualized growth rate reached 31.89%, with excess returns of 137.53%, confirming its ability to leverage market liquidity effectively.