Assume you are trying to create a proxy for an indiviual stock from 30 to 50
of alternate stocks in the same industry.

With 2 years history of daily closing prices available for all the alternate
stocks, what process/analysis would you follow to identify the basket of 3-10
alternates that have most closely tracked the target stock's performance over
that time period?

Do daily closing prices add any significant accuracy to the analysis over,
say, using each Friday's closing price instead?

Any advice gladly accepted.

Duke