  We study the evolution of the red and blue galaxies from $z=3$ to $z=0$ using
the EAGLE simulation. The galaxies in the blue cloud and the red sequence are
separated at each redshift using a scheme based on Otsu's method. Our analysis
shows that the two populations have small differences in the local density and
the clustering strength until $z=2$, after which the red galaxies
preferentially occupy the denser regions and exhibit a significantly stronger
clustering than the blue galaxies. The large differences in the cold gas mass
and the star formation rate (SFR) of the two populations before $z=2$ indicate
that the dichotomy between the two populations may not arise due to the
environment alone. The galaxy pairs at each redshift show a significantly
higher SFR than the isolated control galaxies within pair separations $<200$
kpc. The SFR of the paired galaxies at a given separation declines with the
decreasing redshift, indicating a gradual depletion of their cold gas
reservoir. At smaller pair separations, an anomalous increase of the SFR in
paired galaxies around $z \sim 2$, suggests that the environmental effects
start to dominate at this redshift, increasing the rate of galaxy interactions
and the occurrence of starburst galaxies. We observe a substantial decrease in
the blue fraction in paired galaxies starting from $z=1$ to the present. The
decrease in the blue fraction is mild for the paired galaxies with their second
nearest neighbour at a distance $>500$ kpc.
