Dear statalisters,

I aim to test my data for multicollinearity, first using a correlation matrix. However, some of my independents are dummy variables (FORCED and OUTSIDE) and I expect a strong correlation between them (as I am including an interaction variable between the two in the regression model). I performed a Pearson correlation test with the following code and result:

Code:
. pwcorr ΔOROAt1_adjusted ΔOROAt2_adjusted ΔOROAt3_adjusted ΔOROAt4_adjusted ΔOROAt5_adjusted FORCED OUTSIDE SIZE 
> FISCALYEAR, sig star(.05) obs

             | ΔOROAt.. ΔOROAt.. ΔOROAt.. ΔOROAt.. ΔOROAt..   FORCED  OUTSIDE
-------------+---------------------------------------------------------------
ΔOROAt1_ad~d |   1.0000 
             |
             |      422
             |
ΔOROAt2_ad~d |   0.4980*  1.0000 
             |   0.0000
             |      321      331
             |
ΔOROAt3_ad~d |   0.3534*  0.6523*  1.0000 
             |   0.0000   0.0000
             |      232      229      242
             |
ΔOROAt4_ad~d |   0.2417*  0.4223*  0.6253*  1.0000 
             |   0.0011   0.0000   0.0000
             |      180      181      185      189
             |
ΔOROAt5_ad~d |   0.2070*  0.3981*  0.5098*  0.5875*  1.0000 
             |   0.0196   0.0000   0.0000   0.0000
             |      127      127      131      132      133
             |
      FORCED |   0.0598   0.1187*  0.2041*  0.1432*  0.1906*  1.0000 
             |   0.2204   0.0308   0.0014   0.0493   0.0280
             |      422      331      242      189      133      510
             |
     OUTSIDE |  -0.0008   0.0497   0.0310   0.0164   0.0068   0.0364   1.0000 
             |   0.9868   0.3673   0.6313   0.8225   0.9384   0.4126
             |      422      331      242      189      133      510      510
             |
        SIZE |   0.0342   0.0177   0.0820   0.0128   0.1408  -0.1443* -0.0028 
             |   0.4886   0.7502   0.2044   0.8614   0.1074   0.0012   0.9503
             |      413      327      241      188      132      500      500
             |
  FISCALYEAR |  -0.0472  -0.0879  -0.0237  -0.0935  -0.1436   0.1040*  0.0127 
             |   0.3334   0.1104   0.7137   0.2007   0.0992   0.0188   0.7755
             |      422      331      242      189      133      510      510
             |

             |     SIZE FISCAL~R
-------------+------------------
        SIZE |   1.0000 
             |
             |      500
             |
  FISCALYEAR |   0.0309   1.0000 
             |   0.4905
             |      500      510
             |
Looking at the results, they seem to match my expectations in terms of correlations - but I want to make sure that (1) I am performing the correct correlation test on this type of data (I have read online that the variables have to be continuous for a Pearson correlation to make sense) and that (2) I am interpreting the results in the appropriate way.

Please advise.

Thanks!