To add/edit connection types, go to:
Components > Community Builder > Configuration > Connections [mine was edited to display 'friends'] and follow the instructions as shown:
To change the way a user is connected to another user, login to your CB front-end user account > go to your profile > click on the 'Connections' [mine edited] button > 'Manage Connections'.
Then you can place your friends in the groups you created in the back-end.