High-Volume Stocks Outperform as Morgan Ranks 167th Amid Liquidity-Driven Strategy Surpasses Benchmark by 137.53% Since 2022

On August 8, 2025, Morgan (MS) traded at $0.56 billion in volume, ranking 167th among listed stocks. The stock closed up 1.60%, reflecting modest liquidity activity amid mixed market sentiment.

Recent data underscores the influence of liquidity concentration on short-term performance. A strategy targeting the top 500 stocks by daily trading volume and holding for one day has generated 166.71% returns since 2022. This far exceeds the benchmark’s 29.18% return, with a 137.53% excess return. High-volume stocks often exhibit stronger price momentum, making them attractive for short-term trading, particularly during volatile periods when liquidity-driven strategies can capitalize on rapid price shifts.

Market volatility has amplified the effectiveness of such approaches. During periods of macroeconomic uncertainty, liquidity concentration allows for quicker execution of trades, reducing slippage risks. The strategy’s resilience across varying market conditions—ranging from turbulence to relative calm—demonstrates its adaptability. This aligns with broader trends where liquidity metrics increasingly dictate short-term equity performance.

The backtest from 2022 to the present validates the strategy’s consistency. Over this period, the approach outperformed the benchmark in both volatile and stable markets, reinforcing its reliability as a liquidity-focused trading model. The 166.71% cumulative return highlights the tangible benefits of leveraging trading volume as a selection criterion in dynamic market environments.