First I took some red and white wool sweater scraps.
Then I took a pipe cleaner (unfortunately I couldn't find a red or white one) and scrunched it up on one end to make a "knot," and started to thread them on alternating colors.
Then when I got it mostly filled, I made another "knot" at the top end and bent over the pipe cleaner. Then I cut a length of wool sweater and tied it together and hid the knot in the fold of the candy cane for a hanger. And there you have a wool sweater candy cane ornament.