A compass or Clock in your inventory does not show correct direction. It is just locked on a direction.
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You have to take both items out of inventory before they will work. Reminder: compass points to original spawn, not where you slept last.
In Windows 10 Edition Beta, this makes clocks and compasses unusable, unless place in the hotbar, when using keyboard/controller with this edition. Please fix.
@Jonas Røssum This works as intended. The developers implemented this because of a cheat found that made them useless:
Instead of having to craft the compass/clock, you could just look at it in the crafting table and it would work. To fix this, the developers made the icon static, and since the inventory uses the same icons as the crafting table, the inventory icons are now static.
Happens for Clock too.