Need Help on Alpha Number in stock Market?

Hi Everyone,

Does any one have any idea what does this Alpha numbers mean in share market & how does it is helpful ??? Is there any site or any forum from where can i get info. about this?

I know little bit about Alpha numbers... that which ever stock falls under alpha number category that stock is beaten a lot in market & it can bounce back any time with vengeance .....that is what i think if i am wrong please correct me.

If anyone have any information about ALPHA numbers please help with the information ....THX a lot i'll be really looking forward for the reply .

I don't know if Alpha number you are talking about is same as the one i know. But still let me tell you what i know.
Alpha is the relative return of the stock (or any instrument) with the market (in our case Sensex or Nifty). It is generally taken for a period of one year.

That is if stock rose 22% while market rose 10% then the alpha would be 12%.
I am sure you know what beta numbers are (they are relative volatility of stock compared to market)

But what i can't understand is why stocks having low alpha numbers should bounce back with vengeance as you say ??

Alpha (r2) and beta numbers can be obtained from nse website

www.nse-india.com\archives - indices - market cap weightage beta of nifty...
This is updated yearly for previous year every 31st may

QUOTE FROM WIKIPEDIA
Alpha is a risk-adjusted measure of the so-called active return on an investment. It is the return in excess of the compensation for the risk borne, and thus commonly used to assess active managers' performances. Often, the return of a benchmark is subtracted in order to consider relative performance, which yields Jensen's alpha.
UNQUOTE

SO ALPHA IS A MEASURE OF HOW MUCH THE STOCK RETURNED WITH RESPECT TO RETURN OF BENCH MARK INDICE (EX. NIFTY) FOR A GIVEN PERIOD