Do you mean:

1. Make a position reading at 'A';
2. pick up your GPS, take it to 'B';
3. make another position reading at 'B';
4. from those 2 readings, compute distance & heading from 'A' to 'B'

yes

Your GPS receiver may have "filtering" algorithms to filter the jitter - and may have various options on the filters optimised for "pedestrian" or "vehicle" use, etc,...
the "GPS receiver" will be selected for this purpose (maybe even designed for this purpose) the purpose is to locate a moving object relative to position 'home' after the object has a GPS read at position 'home'. "jumps" in the reading will bring the object back to home (no GPS needed for homing). Basically the queastion is: with which precision can this be done without returning to home every few seconds/minutes?. The idea will be sensitive to 'sliding' error size, but not to jumps. However the app can not tolerate jumps that happen with seconds intervals.

Erik