Explanation
Ridge regression is a type of regularization technique that can help reduce collinearity among independent variables. It does this by adding a penalty term to the ordinary least squares (OLS) objective function, which shrinks the coefficients of highly correlated variables towards zero. This reduces the variance of the coefficient estimates and improves the stability and accuracy of the regression model. References: Multicollinearity in Regression Analysis: Problems, Detection, and Solutions - Statistics By Jim, A Beginner's Guide to Collinearity: What it is and How it affects our regression model - StrataScratch