High-Volume Stock Strategy Leverages Liquidity for 166.71% Return Outperforming Benchmark by 137.53 as Masimo Surges to 205th Ranking with $530M Trading Spree

On August 6, 2025, Masimo (MASI) recorded a trading volume of $530 million, a 186.48% increase from the previous day, ranking it 205th in market activity. The stock closed lower by 11.73% despite elevated liquidity, reflecting heightened volatility in the sector.

High-volume stocks often act as barometers for short-term market sentiment, with liquidity concentration amplifying price movements. This dynamic is particularly pronounced during periods of uncertainty, where institutional and retail traders may prioritize liquid assets to execute strategies efficiently.

A backtested trading approach focused on purchasing the top 500 stocks by daily trading volume and holding them for one day achieved a 166.71% cumulative return from 2022 to the present. This outperformed the benchmark index’s 29.18% return by 137.53%, underscoring the strategy’s ability to capitalize on liquidity-driven momentum in volatile environments.

Such performance highlights the interplay between market depth and price action, where high-volume assets tend to attract follow-through orders, reinforcing directional trends. Traders may increasingly focus on liquidity metrics as a proxy for market conviction in rapidly shifting conditions.

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