financial derivatives

1. You are long 300 shares of a technology stock. The stock's annualized standard deviation of changes in price is 26 . You wish to hedge this position over a one-year horizon with a technology index. The index value has an annual standard deviation of 20. The correlation between the two annual changes is 0.8. How many units of the index should you hold to have the "best" hedge; should you be long or short