ANET vs CSCO: Stock Returns, Risk & Volatility (2026)

Q: Which is a better investment: ANET or CSCO?

Over the past year, it depends: ANET led on total return (ANET +27.5% vs CSCO +21.9%), but CSCO had the higher Sharpe ratio (CSCO 0.72 vs ANET 0.65). On risk, CSCO was less volatile (CSCO 27.4% vs ANET 54.1%), CSCO had a smaller max drawdown (CSCO -17.4% vs ANET -42.0%), and CSCO had less severe losses on the worst 5% of days (Expected Shortfall of CSCO -4.22% vs ANET -7.81%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: ANET or CSCO?

Over the past year, results are mixed (+27.5% vs +21.9%).

Total Return

ANET WIN +27.5%

CSCO +21.9%

Sharpe Ratio

ANET 0.65

CSCO WIN 0.72

Annualized Volatility

ANET 54.1%

CSCO WIN 27.4%

Max Drawdown

ANET -42.0%

CSCO WIN -17.4%

Analysis period: 2025-02-18 to 2026-02-13

ANET Total Return

↑ +27.5%

CSCO Total Return

↑ +21.9%

Relative Performance of ANET vs CSCO (Normalized to 100)

ANET CSCO

Normalized to 100 at start date for comparison

Key Takeaways

Total Return: ANET delivered a +27.5% total return, while CSCO returned +21.9% over the same period. ANET outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): CSCO had a higher Sharpe (0.72 vs 0.65), indicating better risk-adjusted performance.
Volatility (Annualized): ANET was more volatile, with 54.1% annualized volatility, versus 27.4% for CSCO.
Maximum Drawdown: CSCO's maximum drawdown was -17.4%, while ANET experienced a deeper drawdown of -42.0%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), ANET's VaR was -5.88% and its Expected Shortfall (CVaR) was -7.81%; CSCO's were -2.37% and -4.22%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: ANET -0.02 vs CSCO -1.51. Excess kurtosis: ANET 2.38 vs CSCO 15.56. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): ANET 9/4, CSCO 5/3. Worst day: ANET -11.09% (2025-04-03) vs CSCO -12.32% (2026-02-12). Best day: ANET +17.49% (2025-08-06) vs CSCO +9.29% (2025-04-09).
Risk ratios: Sortino - ANET: 0.94 vs. CSCO: 0.98 , Calmar - ANET: 0.66 vs. CSCO: 1.28 , Sterling - ANET: 0.87 vs. CSCO: 1.17 , Treynor - ANET: 0.22 vs. CSCO: 0.22 , Ulcer Index - ANET: 17.68% vs. CSCO: 5.32%

Arista Networks vs Cisco Correlation

0.49 Average Correlation

Arista Networks and Cisco are moderately correlated over the past year. With a correlation of 0.49, these assets show moderate co-movement, offering some diversification when held together.

For portfolio construction, this moderate correlation offers some diversification benefit, though the assets still tend to move together during major market moves.

Metric	Value
Current (30-day)	0.52
Average (full period)	0.49
Minimum	0.06
Maximum	0.80

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.

Investment Comparison

If you invested $10,000 in each asset on February 18, 2025:

ANET $12,748.96 +27.5%

CSCO $12,192.22 +21.9%

Difference: $556.74 (ANET ahead)

Arista Networks and Cisco: Risk Analysis

Arista Networks experienced its maximum drawdown of -42% from 2025-02-18 to 2025-04-04. It took 104 days to recover.

Cisco experienced its maximum drawdown of -17.4% from 2025-02-19 to 2025-04-08. It took 57 days to recover.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

Sharpe Ratio of ANET and CSCO

ANET Sharpe Ratio

↑ 0.65

CSCO Sharpe Ratio

↑ 0.72

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. CSCO had a higher Sharpe (0.72 vs 0.65), indicating better risk-adjusted performance.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of ANET and CSCO

ANET Sortino Ratio

↑ 0.94

CSCO Sortino Ratio

↑ 0.98

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). CSCO had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: ANET 37.2% vs CSCO 20.1%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of ANET and CSCO

ANET Calmar Ratio

↑ 0.66

CSCO Calmar Ratio

↑ 1.28

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. CSCO posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of ANET and CSCO

ANET Sterling Ratio

↑ 0.87

CSCO Sterling Ratio

↑ 1.17

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). CSCO posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of ANET and CSCO

ANET Treynor Ratio

↑ 0.22

CSCO Treynor Ratio

↑ 0.22

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. ANET posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of ANET and CSCO

ANET Ulcer Index

17.68%

CSCO Ulcer Index

5.32%

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. CSCO had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): Arista Networks vs. Cisco

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Metric (1-Year)	ANET	CSCO
5% VaR (daily log return)	-5.88%	-2.37%
5% Expected Shortfall (CVaR)	-7.81% (worst 13 days)	-4.22% (worst 13 days)
Skew	-0.02	-1.51
Excess kurtosis	2.38	15.56
2σ tail days (down / up)	9 / 4	5 / 3
Worst day	-11.09% (2025-04-03)	-12.32% (2026-02-12)
Best day	+17.49% (2025-08-06)	+9.29% (2025-04-09)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=249). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

When CSCO has a big down day, ANET also does

40.0%

2 / 5 days

When ANET has a big down day, CSCO also does

22.2%

2 / 9 days

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both ANET and CSCO had a big down day (2σ)

Date (interval)	ANET	CSCO
2025-04-03	-11.09%	-6.63%
2025-04-04	-9.68%	-4.83%

Days when ANET had a big down day

Date (interval)	ANET	CSCO
2025-02-28 → 2025-03-03	-7.57%	-0.98%
2025-03-07 → 2025-03-10	-6.96%	-2.94%
2025-04-03	-11.09%	-6.63%
2025-04-04	-9.68%	-4.83%
2025-05-29	-6.92%	-0.46%
2025-09-12	-8.92%	-1.71%
2025-11-05	-8.55%	-0.30%
2025-12-12	-7.17%	-1.85%
2026-02-04	-6.54%	-2.35%

Days when CSCO had a big down day

Date (interval)	ANET	CSCO
2025-04-03	-11.09%	-6.63%
2025-04-04	-9.68%	-4.83%
2025-08-15	+0.60%	-4.47%
2025-11-20	-4.18%	-3.76%
2026-02-12	-3.94%	-12.32%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Arista Networks vs Cisco Volatility (ANET vs CSCO)

ANET Volatility

54.1%

±3.41% daily

CSCO Volatility

27.4%

±1.73% daily

Typical daily swing

ANET

±3.41%

CSCO

±1.73%

Arista Networks's annualized volatility of 54.1% means it typically moves ±3.41% on any given day.

Cisco's annualized volatility of 27.4% means it typically moves ±1.73% on any given day.

ANET's higher volatility means a wider path to returns — this can be attractive for tactical, shorter-term exposure, while CSCO's smoother profile may better suit long-term allocators seeking steadier growth.

For comparison, the S&P 500 typically has 15-18% annualized volatility, translating to roughly ±1% daily moves. Higher volatility means larger potential gains but also larger potential losses.

Arista Networks vs Cisco Performance Over Time

Metric	ANET	CSCO
30 Days	13.2%	3.3%
90 Days	7.8%	-0.9%
180 Days	3.1%	17.4%
1 Year	N/A	N/A

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

Full Comparison of Arista Networks vs. Cisco (1-Year)

Metric	ANET	CSCO
Total Return	+27.5%	+21.9%
Annualized Volatility	54.1%	27.4%
Sharpe Ratio	0.65	0.72
Sortino Ratio	0.94	0.98
Calmar Ratio	0.66	1.28
Sterling Ratio	0.87	1.17
Treynor Ratio	0.22	0.22
Ulcer Index	17.68%	5.32%
Max Drawdown	-42.0%	-17.4%
Avg Correlation to S&P 500	0.50	0.55
5% VaR (daily log return)	-5.88%	-2.37%
5% Expected Shortfall (CVaR)	-7.81%	-4.22%
Skew	-0.02	-1.51
Excess kurtosis	2.38	15.56
2σ tail days (down / up)	9 / 4	5 / 3

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-02-18 → 2026-02-13 (last shared close).
Rolling correlation sample (shared closes): 220 rolling 30-day values (from 249 shared daily returns).
Annualization (days/year): ANET: 252 days/year; CSCO: 252 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

ANET: 4.20% over 2025-02-18 → 2026-02-13.

CSCO: 4.20% over 2025-02-18 → 2026-02-13.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

ANET: ≈ -14.6%/yr

CSCO: ≈ -3.8%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

Arista Networks vs Cisco: Frequently Asked Questions

Which has higher volatility: ANET or CSCO?

ANET showed higher volatility at 54.1% annualized, compared to 27.4% for CSCO Over the past year. Higher volatility means larger price swings in both directions.

Does ANET provide diversification when held with CSCO?

ANET and CSCO are moderately correlated over the past year, with an average correlation of 0.49. This offers some diversification benefit, though they still tend to move together during major market moves.

How bad are the worst 5% days for ANET vs CSCO?

Over the past year, ANET's 5% VaR was -5.88% and its 5% Expected Shortfall was -7.81% (worst 13 days). CSCO's were -2.37% and -4.22% (worst 13 days).

Do ANET and CSCO crash together on bad days?

On shared dates (n=249), when CSCO has a 2σ down day, ANET also does 40.0% (2/5 days). In the other direction, when ANET has one, CSCO also does 22.2% (2/9 days).

Which has better risk-adjusted returns: ANET or CSCO?

CSCO showed better risk-adjusted performance with a Sharpe ratio of 0.72 versus ANET's 0.65 Over the past year.

Can ANET and CSCO be combined in a portfolio?

Yes, though allocation sizing matters. Their moderate correlation offers some diversification benefits. ANET's higher volatility (54.1%) means even small allocations can materially impact overall portfolio risk.