Liquidity and turnover appears to be helpful in some trading scenarios. According to a study liquidity and turnover in machine driven trading increases investment returns. Machine Learning and Liquidity in Stock Return From a transactional perspective this would make sense if the reasons for the turn over is truly market driven. While this is a study of the stock market we can say that all economies have turnover based in transations. Generally, from my theory the increase in transactions increases adaptations and that in turn increases investment return within a cluster. It aligns, but unsure of exactly how, where increases in trade volume also seems to increase in returns. This may mean there could be some similarities in stock, decision influence, and innovative performance that leads to higher performance. Or not...I'm just thinking about it and taking a broad view but I would think there is some relation between them. (PS. while looking for this study I also found one on Bitcoin and Gold Trading. Bitcoin is all the buzz! )
We are just exploring ideas in this blog. Things have to be looked at much closer to understand fully or whether or not even possible.
Checking out my stock portfolion I find that I have about a 62.93% increase since I started it just to determine whether its possible to beat the market. i.e. more seasoned investors. I looked a while ago and it seems like I was at least on par or just over. In this cases I'm not sure because the major upswing in the market is very recent. Interestingly I just recently bought into a AI company and have a 11% increase. Apparently the companyannouced being under a securities fraud investigation increases its value. I learn something new every day 🤷
Qing Zhu, Chenyu Han, Yuze Li, (2024) Dual-market quantitative trading: The dynamics of liquidity and turnover in financial markets. Data Science and Management, 2024 ISSN 2666-7649,
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