Yes, Liquid Stocks Can Outperform — If Engagement Is Treated Correctly.

In liquid markets, most stocks exhibit meaningful correlation to the S&P 500, creating a shared variance profile that dominates short-term outcomes.

That fact is often misinterpreted as a ceiling on outperformance.

It isn’t.

It simply means that without controlling when and how exposure is engaged, beta overwhelms results — regardless of how strong the underlying analysis may be.