My application is a hobby project. It's going to be a speedometer for bicycle and utilizes GPS to estimate the speed. I also want to find the north angle and display it on the screen of the gadget. Although I can estimate the border of movement and calculate the approx. value of north angle, I still am looking for to see if I can find an actual compass to make it more accurate.
The chassis of the housing I have considered for it is made of iron (found it in my scrap parts).
And maybe the sensor should be as close to the center of the iron chassis as possible. Thus, magnetic field distortion is minimal (or self compensated).