Econometrics v Stochastic Modelling

[clatty cake]

Alright, been narrowing down my choice over where to study an MSc. My main decision now is choosing between a course that offers econometrics modules and a course which offers stochastic modelling modules.

I have done stochastic modelling during my undergrad, however I only have a vague idea with regards to the subject of Econometrics. Can somebody explain to me the differences between the two subjects, and whether there is a divergence in career path?

I have been out of education for two years and have relevant work experience.

 

[Freakonometrics]

In econometrics "we" usually try to define a causative relationship between specific (in)dependent variables. As such an empirical relationship is estimated, on which you can possibly trade (arbitrage if the "market" deviates from the "true" relationship). Stochastic modelling refers to taking a status quo and simulating from that starting point by introducing stochastic events to see what may happen to your portfolio (i.e. risk analysis). At least that's what I have been told. Correct me if I'm wrong.