Okay, I've changed my mind

[Doc]

Maybe the red hoods is a copycat of the alleged dress of Spanish Inquisitors?  Seems a bit counterintuitive, since quite a bit of early Klan rhetoric was explicitly anti Catholic.  Maybe the matter is simpler, that there are only so many colors available, you have to pick one.

Occhi
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The klan is still very anti Catholic. And you are not the first to compare the red hoods to the Spanish Inquisition. (Whom nobody suspects)

Red hoods are earned. They are bought with blood. Much killing must be done to get one. Confirmed kills, that others must witness, usually ritualistic killings where good ol' boys will kidnap somebody, and go on a "coon hunt" with dogs and guns. When the hunt is over, the person is beaten and usually hanged. There are other games as well, other means of killing. People who earn the red hoods are typically psychotic sociopathic bastards that have no concept of the value of human life. Sick individuals. And it's not just killing one or two people... It's killing a lot of people. So if you ever spot a red hooded klansman during a rally, you at least know what sort of sick #$%& you are dealing with.

Green is also particularly bad. Samuel Green revived the klan back in 1946. He proclaimed himself the Imperial Wizard, High Inquisitor. The Wizards, or the Order of the Dragon typically wear green hoods. They are some seriously sick farked up people. They are leaders. Masterminds. Brains. Both smart and evil. Should you ever attend and desire to break up a klan rally, these are the people you aim for with malatov cocktails or tear gas canisters. Instead of green hoods, now, most of them wear a little forest green kercheif in the pocket of their suit or some kind of green marker somewhere on their clothing.

It's a whole rainbow of hate. This probably isn't the best place to talk about this.