The red "X" is used to show a Google map to the user.
The frame of reference defines the four cardinal directions – north, south, east, and west.
When the compass is in use, the rose is aligned with the real directions in the frame of reference, so, for example, the "N" mark on the rose really points to the north.
In addition to the rose, angle markings in degrees are shown on the compass app.
North corresponds to zero degrees, and the angles increase clockwise, so east is 90 degrees, south is 180, and west is 270. These numbers allow the compass to show azimuths or bearings, which are commonly stated in this notation.
-Taken from Wikipedia
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