High-Volume Stocks Outperform with 166% Return as Liquidity-Driven Strategy Surpasses Benchmark by 137%

On August 5, 2025, The stock traded with a volume of $1.01 billion, ranking 86th among daily trading volumes in the market. Meanwhile, Procter & Gamble (PG) experienced a 0.17% decline in its share price.

Recent market dynamics highlight the significance of liquidity concentration in short-term equity performance. Strategies focusing on high-volume stocks demonstrate a distinct advantage in capturing market momentum. This is particularly relevant in volatile environments where investor activity directly influences price trajectories.

A backtested approach involving the purchase of the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present. This significantly outperformed the benchmark return of 29.18%, achieving a 137.53% excess return. The results underscore the efficacy of liquidity-driven strategies in short-term trading, as high-volume stocks reflect sustained investor interest and market participation.

The strategy's performance indicates that liquidity concentration can amplify gains in dynamic markets. By prioritizing stocks with strong trading activity, investors may better align with short-term market movements. The consistent high volume observed in these stocks suggests persistent demand, which can drive upward price pressure in the near term.

Key metrics from the backtest reveal the strategy’s 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This highlights the role of liquidity concentration in short-term stock performance, particularly in volatile markets.