I am not suggesting to add defensive stocks. On the contrary, I am saying with your approach you will end up with defensive stocks. The objective should be lower volatility at a portfolio level and that can be achieved even by including cyclicals, if the portfolio stocks are uncorrelated or negatively correlated with each other.
On measure of volatility, I will try to write sometime later this week. Meanwhile you can look at a metric called Average True Range (ATR) until then.
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