I read several posts and resources including this, this, and this. I understand the colinearity problem in machine learning. I also get why LASSO method becomes unreliable if the predictor variables are highly correlated and it leads to shrinking of the coefficients of highly correlated variables toward zero while keeping only one variable in the regression equation.
My question is what is the cutoff in colinearity that starts to pose a problem for LASSO method? My use case scenario is looking at a set of ~200 genes and finding which ones are the most important variables to explain a response variable (such as survival or tissue classification). I saw papers that used LASSO method to select features, and I'd like to employ a similar approach to shrink down this list to something workable (10-15 genes). I don't necessarily want the correlated variables to be dropped from the regression though, since they may be simultaneously important. This sounds like the Ridge method at this point, but the problem with that is it won't perform feature selection as LASSO does. Is there a correlation cutoff between any variables like rho = +/- 0.75
or something like it to signal LASSO method is not good to use with the given dataset?
To give you a sense of the data I'm working with, this is how the correlation matrix of the 200 genes looks like:
dat <- scale(expression_data)
heatmap(cor(dat), show_colnames=F, show_rownames(data)
Thanks!