Formula For Volatility Adjusted SPY Hedge

Quote from newwurldmn:

-1*Sum(Beta*quantity*price)/priceSPY

Please don't take offense to this question, but how do you build a presumably sophisticated long short system and not understand beta?
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absolutely good question. I have self taught myself everything i know and i admit there are things im ignorant too, but im never afraid to ask or learn new things. Infact in asking is how ive learnt, now i before i posted this question i really never had a clue how to hedge, but through asking i now have new knowledge, and basically this is how ive got to this point today and also through first hand trading experience.

I knew a little about beta through and the scoring of each stock correlation and volatility.
 
sorry to sound like a complete fool but i dont understand this part of the formula.


-1*Sum



Do I understand this part correctly?:

(Beta*quantity*price)/priceSPY


beta score on FINVIZ screener x share quantity x stock price/priceSPY


many thanks you have been very helpful.
 
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