This factor is based on the principles of limited rationality and information diffusion delay in behavioral finance. Due to cognitive biases and limitations in information processing speed, investors are often unable to fully digest all information at the first time of news release, resulting in a lag in stock price changes in response to news. In addition, it takes a certain amount of time for financial analysts to interpret news events and adjust earnings forecasts based on them. These factors together constitute the driving force of the news momentum effect. This factor attempts to capture this tradable opportunity generated by the market's lack of reaction by quantifying the cumulative effect of returns on news release days. In addition, this factor has a higher information content than the traditional price momentum factor because it focuses on news, an event-driven factor that may trigger changes in market sentiment.