The goal of portfolio management is to simultaneously maximize the accumulated return and also to control risk. In consecutive trading periods, portfolio manager needs to continuously adjust the portfolio weights based on the factors which can cause price fluctuation in the market. In the stock market, the factors affecting the stock price can be divided into two categories. The first is price fluctuations caused by irrational investment of the speculators. The second is endogenous value changes caused by operations of the company. In recent years, with the advancement of artificial intelligence technology, reinforcement learning (RL) algorithms have been increasingly employed by scholars to address financial problems, particularly in the area of portfolio management. However, the deep RL models proposed by these scholars in the past have focused more on analyzing the price changes caused by the investment behavior of speculators in response to technical indicators of actual stock prices. In this research, we introduce an RL-based framework called FinBPM, which takes both the factor pertaining to the impact on operations of the company and the factor of the irrational investment of the speculator into consideration. For our experimentation, we randomly selected twelve stocks from the Dow Jones Industrial Index to construct our portfolio. The experimental results reveal that, in comparison to conventional reinforcement learning methods, our approach with at least 13.26% increase over other methods compared. Additionally, it achieved the best Sharpe ratio of 2.77, effectively maximizing the return per unit of risk.

With the development of NLP technologies, news can be automatically categorized and labeled according to a variety of characteristics, at the same time be represented as low dimensional embeddings. However, it lacks a systematic approach that effectively integrates the inherited features and inter-textual knowledge of news to represent the collective information with a dense vector. With the aim of filling this gap, the News2vec model is proposed to allow the distributed representation of news taking into account its associated features. To describe the cross-document linkages between news, a network consisting of news and its attributes is constructed. Moreover, the News2vec model treats the news node as a bag of features by developing the Subnode model. Based on the biased random walk and the skip-gram model, each news feature is mapped to a vector, and the news is thus represented as the sum of its features. This approach offers an easy solution to create embeddings for unseen news nodes based on its attributes. To evaluate our model, dimension reduction plots and correlation heat-maps are created to visualize the news vectors, together with the application of two downstream tasks, the stock movement prediction and news recommendation. By comparing with other established text/sentence embedding models, we show that News2vec achieves state-of-the-art performance on these news-related tasks.