TE Connectivity Climbs to 340th Volume Rank as Momentum Strategies Fuel 166.71% Returns

On August 8, 2025, TE Connectivity (TEL) closed with a 1.03% gain, trading at $0.29 billion in volume—a rank of 340 among listed equities. The stock’s performance aligned with broader momentum strategies favoring high-liquidity names, as evidenced by recent backtesting results.

A strategy of purchasing the top 500 most actively traded stocks daily and holding for one day generated a 166.71% cumulative return since 2022, significantly outpacing the benchmark index’s 29.18% gain. This 137.53 percentage point outperformance underscores the predictive power of liquidity concentration in volatile markets, where short-term price movements are amplified for high-volume equities.

Historical data revealed that stocks with substantial trading activity, such as Newmont and McKesson, exhibited pronounced price swings during periods of market turbulence. This pattern suggests that liquidity acts as a catalyst for momentum-driven strategies, enabling rapid capital rotation into and out of positions without materially affecting pricing. For TE, its mid-tier volume rank indicates potential for further volatility as market breadth expands.

The backtest results confirm that liquidity-driven strategies remain robust in capturing short-term opportunities, particularly when market conditions favor rapid shifts in capital allocation. The 166.71% return from 2022 to the present highlights the structural advantage of high-volume stocks in environments marked by intermittent volatility and uneven sector participation.