How to change colors based on Friendly or Enemies types?

So I’ve have created a crosshair, I want the crosshair to change colors based on what its currently pointing at, ie, red for the Enemy Character, or green for my Buddy Character. When im not pointing at anything, i want the crosshair to return to white. I am using the capsule component of the Enemy Character to trigger the On Component(Begin Overlap) node. I did try setting game tags, but I’m not sure how to use them correctly, also I did try comparing the two actors, So I think im missing something.

P.S If you can, I would like to see examples of how are game tags are correctly used, that would be awesome!