Top 500 High-Volume Stocks Strategy Generates 166% Return Outperforming Market by 137%
On July 31, 2025, New traded with a volume of $0.41 billion, ranking 347th in daily trading activity. Concurrently, BK fell 0.83%.
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The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present. This outperformed the benchmark return of 29.18%, generating an excess return of 137.53%. The compound annual growth rate (CAGR) for this strategy was 31.89%, indicating strong risk-adjusted performance and capital appreciation potential. This strategy consistently capitalized on market dynamics, leveraging high-liquidity stocks to drive short-term gains. The significant outperformance relative to the benchmark highlights the effectiveness of this approach in volatile markets. However, the reliance on high trading volumes and short-term holding periods suggests that this strategy is most effective for investors looking to capitalize on liquidity-driven price movements, with a clear focus on risk management to avoid potential downturns in stock volumes and prices.

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