As mentioned above, the most popular stocks to trade by volume consistently show up as the likes of giant corporations Facebook, Amazon, Apple, Netflix and Alphabet, but different fundamental events can cause the stocks of various other companies to come out on top in shorter-term trading volume. The chart below shows the stocks with the highest global volume for the month at the end of March 2020.
The leading stock by volume, Greece-based tanker vessel operator Top Ships Inc, grew in popularity as an asset sale saw an influx of funding which allowed the company to greatly reduce its debt. The stock was likely even buoyed by circumstances surrounding thepandemic, with surging product demand in areas such as cleaning supplies and paper products leading to increased shipping requirements.
Another company seeing unusually high volume in March was cruise line operator Carnival Corp, much of which was to the short side as the company suspended dividend payments and stock repurchases as voyage suspensions continued amid the coronavirus outbreak. Rounding out the top three is Ford, which saw a seven-year high in trading volume, again mostly to the short side, as coronavirus decimated production and market demand.
What lesson can stock pickers learn from these examples? When a huge fundamental crisis hits, stocks are affected in different ways. Research on different sectors may shine a light on the industries that could pick up steam when others are going in the other direction. So read up, keep your eyes open, and focus on the goals of the portfolio.