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FinMarBa: A Market-Informed Dataset for Financial Sentiment Classification

2025-07-24 · Baptiste Lefort, Eric Benhamou, Beatrice Guez, Jean-Jacques Ohana, Ethan Setrouk, Alban Etienne arxiv

This paper presents a novel hierarchical framework for portfolio optimization, integrating lightweight Large Language Models (LLMs) with Deep Reinforcement Learning (DRL) to combine sentiment signals from financial news with traditional market indicators. Our three-tier architecture employs base RL agents to process hybrid data, meta-agents to aggregate their decisions, and a super-agent to merge decisions based on market data and sentiment analysis. Evaluated on data from 2018 to 2024, after training on 2000-2017, the framework achieves a 26% annualized return and a Sharpe ratio of 1.2, outperforming equal-weighted and S&P 500 benchmarks. Key contributions include scalable cross-modal integration, a hierarchical RL structure for enhanced stability, and open-source reproducibility.

📄 PDF Abstract BibTeX arXiv:2507.22932

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Reinforcement LearningPortfolio OptimizationSentiment Analysis

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