Liquidity-Driven Strategy Outperforms Market by 137.53% as ON Semiconductor Ranks 292nd in Trading Activity

On July 30, 2025, ON Semiconductor (ON) closed with a 0.57% decline, trading at $42.50 per share. The stock recorded a daily trading volume of $430 million, ranking 292nd in market activity. Despite the drop, the stock's performance aligns with broader market trends as volume-based strategies have demonstrated exceptional returns in recent years.

A strategy focused on purchasing the top 500 stocks by daily trading volume and holding for one day has generated a 166.71% cumulative return since 2022. This significantly outperforms the benchmark index's 29.18% return over the same period, delivering an excess return of 137.53%. The approach's annualized return of 31.89% underscores its effectiveness in capturing liquidity-driven opportunities in high-volume stocks.

Risk metrics further validate the strategy's strength, with a maximum drawdown of 0.00% and a Sharpe ratio of 1.14. These figures highlight the strategy's ability to generate strong returns while maintaining favorable risk-adjusted performance. The results suggest that liquidity concentration in high-volume equities remains a compelling factor in capitalizing on short-term market dynamics.

Backtesting from 2022 to present confirms the strategy's viability, with the 166.71% return outperforming market benchmarks while maintaining a low-risk profile. The approach's consistent outperformance positions it as a relevant consideration for investors seeking liquidity-focused alpha generation in volatile markets.