# Equity low beta: two negative identities and no defensive sleeve

**Author:** Arhan Canli, Founder and Quantitative Researcher, Canli Capital  
**Family key:** `equity_low_beta` · **System:** ALPHAC / AlphaForge  
**Status:** public research record; not peer reviewed; not an investment solicitation

## Finding and boundary

The tested signal ranks equities by 252-session beta, seeking a long-low-beta/short-high-beta
spread. Two charged identities produced annualized Sharpe -0.5995 over 728 observations and
-0.0679 over 5,384 observations. The longer result also records skew +8.2898 and kurtosis 311.7071,
which requires curve-level investigation rather than a flattering interpretation.

Frazzini and Pedersen document betting against beta
([Journal of Financial Economics](https://doi.org/10.1016/j.jfineco.2013.10.005)), but ALPHAC's
negative summaries do not replicate an admissible implementation. Low beta can overlap equity
defensiveness, quality, financing constraints, and market timing; both rows form one family.

No identity-matched public curves, DSR, drawdown, capacity sweep, or broker-forward record survive.
**Decision: FAIL / zero sleeves.** The machine packet is
[`equity_low_beta_family.json`](/glassbox/equity_low_beta_family.json). Research and implementation
were authored and directed by **Arhan Canli**; no AlphaMax or Alpaca return is relabeled low beta.