Red Alloy Wire crafted with Wool creates Insulated Wire. It is different from uninsulated wire because it will not power blocks its end is not connected to and it will not connect with Insulated Wire of a different color.
Crafting Insulated Wire is identical to crafting Red Alloy Wire except with the addition of six wool blocks, three on either side of the ingots. Using different colored wool during crafting will create different colored wire. The colors of wire are:
Black, Red, Green, Brown, Blue, Purple, Cyan, Light Gray, Gray, Pink, Lime, Yellow, Light Blue, Magenta, Orange and White.