High Volume Strategies Outperform with 166.71 Return Kenvue Ranks 172 in Liquidity Amid Decline

On August 8, 2025, Kenvue (KVUE) closed at a 1.93% decline with a trading volume of $550 million, ranking 172nd among stocks traded that day. The company’s shares showed reduced liquidity compared to its peers despite maintaining a significant presence in the consumer healthcare sector.

Performance data from high-volume trading strategies highlights the role of liquidity concentration in short-term returns. A strategy focused on the top 500 stocks by daily trading volume generated a 166.71% return from 2022 to the present, far exceeding the benchmark index’s 29.18% gain. This 137.53% outperformance underscores how liquidity-driven approaches can capitalize on price momentum, particularly during periods of market volatility.

Short-term trading strategies benefit from concentrated liquidity as high-volume stocks often exhibit stronger price reactions. This dynamic is especially relevant in volatile environments where rapid shifts in investor sentiment amplify short-term gains. The strategy’s resilience across varying market conditions, including periods of uncertainty and macroeconomic changes, further validates its effectiveness.

Backtesting results from 2022 to the present confirm the strategy’s consistency in outperforming benchmarks. The 166.71% cumulative return demonstrates the tangible impact of liquidity concentration on short-term stock performance, aligning with observed trends in market behavior during fluctuating conditions.