Ok, that don't look good to me. Typical way of connecting a pot is to tie one end to +V, the other to GND and the wiper goes to your signal input. So in your case let's say black to GND, white to 5V (or whatever your 'duino runs at) and red to A1 or whatever ADC pin you're using.
The way you've tied it now is as a variable resistor/rheostat. Yes, can work, but why not do it the proper way and be done with it.
You can figure out which pins to connect +v and GND to on your pot by measuring the resistance between any two pins; the ones you measure a resistance between that does not change as you turn the pot are the ones you connect GND and V+ to. The remaining is your wiper pin that goes to the microcontroller.