on Nov 13, 2015 at 1:29:05 pm Last Edited By Kalle Kannisto on Nov 13, 2015 at 1:35:05 pm
From the looks of it, your circle is not in the center of the square, so if they have a common center point, it is off-center. If you select the circle layer, you should see the anchor point, which is the point the layer rotates around. You can move it with the "pan behind" tool.
Alternately, you can draw a new shape layer for the dotted line from the center point holding ctrl+shift (for drawing from center and constraining proportions). A shape layer Stroke has Dashes option.