I think that is rather obvious. An ETF that goes up when TSLA goes down.is an obvious hedge for TSLA stock. And the 1.5 means you have to buy just 2/3rds of your TSLA holding. However, hedging s not for everybody. For instance, if you bought exactly 2./3rds in the above example and the hedge performed EXACTLY as expected, you would be guaranteed no losses. BUT ALSO, no upside. WHY EVEN BOTHER?