Let's say I'm long $10k worth of QQQ, and I don't want to sell because I don't want to incur a short-term tax. But I think the market will drop, so I hedge by buying $10k worth of PSQ (inverse QQQ ETF).
If the market drops 10%, then that PSQ now has a market value of $11k and my QQQ has a market value of $9k.
Am I now over-hedged? Should I trim my PSQ so that I'm only holding $9k worth if I want to remain net neutral??
Similarly, let's say the market keeps going up, and then my QQQ will have more market value than my PSQ. Do I then add to my PSQ to keep the hedge going or leave it alone?