Hello,
i was studying the formula for MVHR = Std(DC)/Std(FX) * Correleation(DC,FX) and i could not help to observe that its similar to Beta ! where beta = Covariance/Variance.
starting with correlation formula (p=Cov/(Std*Std)) and reengineer it to MVHR. You will have MVHR = Beta.
So, can we conclude that MVHR is just return sensitivity to exchange rate volatility ?