However, hedge funds now use arbitrage and speculation, which is far from their essence. Hedging is only reflected in the liquidation of the hedging position. Because hedge funds used to be non-regulatory institutions, they have also become synonymous with high risk and high return.
The dollar and gold you mentioned are related financial assets (the correlation can be negative), and the transaction using this relationship can not be called hedging, but arbitrage.
At present, the trading methods that can also be called hedging trading include: stock matching trading, neutral trading in the stock market, convertible bond trading, mortgage collateral arbitrage trading (a kind of subordinated debt), global macro trading (foreign exchange market) and so on. This only shows that they belong to the trading strategy of hedge funds.