Is Core Lithium Ltd (ASX: CXO) the hottest stock on the S&P/ASX 200 Index (ASX: XJO) right now?
One might not think so after the ASX 200 lithium share's recent performance. Core Lithium shares are down a nasty 2.3% so far today to $1.28 a share.
Since the company hit a new all-time high of $1.88 a share back on 14 November, Core Lithium shares have shed a depressing near-32% of their value.
But zooming out and the picture looks a lot rosier. Core Lithium remains up a very impressive 103% in 2022 to date, having started the year at just 63 cents a share. Core Lithium is also up more than 166% over the past 12 months.
So why do we think Core Lithium is one of the ASX 200 hottest stocks right now? Many ASX shares have beaten Core Lithium's impressive performance this year, after all.
Well, it's Core Lithium's consistent and dominant presence in the ASX 200's trading volume charts that really lend credence.
Most days here at the Fool, we take a look at the three most actively traded ASX 200 shares on the share market. And in recent months, Core Lithium consistently shows up in that list.
Just take yesterday. When we looked at the most active shares on Monday, Core Lithium came in at second place for the entire ASX 200, with almost 20 million shares traded.
Core Lithium was also on our list last Thursday, Tuesday and Monday, the latter in top spot.
So this tells us that more Core Lithium shares fly around the share market on any given day than most other ASX 200 shares.
What makes Core Lithium such a hot ASX 200 stock?
This could be due to a few different factors.
Firstly, Core Lithium's status as a winner no doubt helps. When a company rises more than 100% in value over a year, and displays significant volatility along the way, it is always going to attract traders and speculators looking to jump on what could be a quick profit.
The second is Core Lithium's relatively low share price. Today, the company is sitting at $1.28 a share. If an investor wanted to buy or sell $5,000 worth of Core Lithium shares, this would represent around 3,900 individual shares.
The same amount of cash would 'only' buy roughly 46 Commonwealth Bank of Australia (ASX: CBA) shares. Or just 16 CSL Limited (ASX: CSL) shares. So this would boost volumes too.
Lastly, lithium has been one of the ASX 200's hottest trends this year. Almost all lithium shares on the ASX have received significant investor attention. This inherently makes a lithium share like Core a highly traded company.
So it's these reasons that are likely responsible for making Core Lithium one of the hottest stocks on the ASX 200 right now. This will certainly be one ASX 200 share worth watching in 2023.
