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How to calculate a sector index?

Hello,
let's say I have 3 stocks which I want/think are representative for a sector and I want to investigate how that sector has performed the last 12 months. Given I download the 12 month data for the 3 stocks how to I create a sector index from these?
I am thinking about getting the 200 day MA for all 3 stocks and then average that over the period but maybe there is a best practice for this already.
Cheers.