You mention in your OP that you have Stellarium. Please check location set in the program matches your locale.
I just set mine to Perth and 8:30pm on 2 July, 2020. At SSW I can see Canopus at 20 deg altitude. On 9 July, 2020 at he same time it is about 16 deg altitude slightly further S. Canopus can only get as far as SW (no further west) and this at 40 deg altitude. (Time this occurs depends on date).
There is no way Canopus can be W at 1am (or any other time) so you are likely seeing another star. At 1am there is Spica at 46 deg altitude in the W and Arcturus at 19 deg in the NW. These positions on 2 July, now slightly lower on 9 July.
I believe you witnessed Canopus in the evening and Arcturus in the very early morning, (Arcturus will set closer to WNW around 2am tomorrow morning, 30min later a week ago)
The colour shifting you describe is classics atmospheric refraction and dispersion. When you look toward the horizon you are looking through the edge and thickest part of the atmosphere. Any starlight seen through this layer of air will bend in all directions and different colours will bend different amounts. Light will be stretched horizontally similar to an elliptical setting Sun although it is not a point source. Depending on the thickness of the air and the altitude of the star will determine the amount of refraction and twinkling and dispersion of colour.
May I suggest you get yourself a Planisphere and then you will be able to see what is up and where all year round.
See
https://www.bintel.com.au/?post_type...v=322b26af01d5
Make sure you get one for the southern hemisphere at approx your latitude (most sold for 35 South). If you buy from OS direct you may end up with a northern hemisphere version which will be useless.