High-Volume Stocks Soar as ONON Tumbles to 407th in Liquidity Amid 166.71% Strategy Gains

On August 6, 2025, On (ONON) saw a 0.72% decline despite a 38.16% surge in trading volume to $0.29 billion, ranking it 407th in market liquidity. The stock's performance aligns with broader market dynamics where liquidity concentration significantly impacts short-term price movements, particularly in volatile conditions.

A strategy focusing on high-volume stocks has demonstrated strong historical returns. Buying the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to present, far exceeding the benchmark's 29.18% gain. This underscores liquidity-driven momentum as a key factor in short-term gains, especially during periods of heightened volatility when large volumes attract traders and amplify price trends.

While the strategy's success highlights the advantages of liquidity concentration, it also carries inherent risks. Rapid market shifts can disrupt momentum, and high-volume stocks may not sustain their performance. Investors must weigh these dynamics carefully, as historical outperformance does not guarantee future results in evolving market conditions.

The backtested strategy returned 166.71% from 2022 to the present by purchasing the top 500 high-volume stocks daily and holding them for one day. This outperformed the benchmark return of 29.18% by 137.53 percentage points, demonstrating the potential of liquidity-focused approaches in volatile markets.