How to color diff output?

I wanted to format the Unix files conditionally, I am currently working on diff command and wanted to know if it is possible to format the text of the diff command output. Example: >Matched values should be displayed in green. Unmatched values should be displayed in red. Suppose I have two files file1 and file2 and my command is diff file1 file2 . Now I wanted that suppose output contain 5 mismatch then those mismatch should be displayed in Red color. How to achieve this using unix? In short "Change color to red for the output of diff command for values which mismatch"