hanging vs decoration

hanging and decoration both are nouns.

Word	Noun	Adjective	Verb	Adverb
hanging	Yes	No	No	No
decoration	Yes	No	No	No

As nouns, decoration is a hypernym of hanging; that is, decoration is a word with a broader meaning than hanging:

Other hypernyms of hanging include ornament, ornamentation.

hanging (noun)	decoration (noun)
the act of suspending something (hanging it from above so it moves freely)	the act of decorating something (in the hope of making it more attractive)
a form of capital punishment; victim is suspended by the neck from a gallows or gibbet until dead	something used to beautify
decoration that is hung (as a tapestry) on a wall or over a window	an award for winning a championship or commemorating some other event