HighVolume Strategy Shines as Otis Slides to 348th in Liquidity Rankings with 27.8% Volume Drop

On August 6, 2025, Otis (OTIS) closed with a 0.80% gain, trading at a daily volume of $340 million—a 27.8% decline from the prior day. The stock ranked 348th in trading activity among listed companies, reflecting mixed short-term liquidity dynamics in its market segment.

The backtested strategy of purchasing 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 outperformed the benchmark return of 29.18% by 137.53%, highlighting the potential of liquidity concentration in capturing short-term momentum, particularly in volatile environments. The results underscore the role of high-volume stocks in amplifying returns during periods of market turbulence, though risks such as rapid trend shifts and overexposure to high-liquidity assets remain critical considerations.