Some people go as far to calculate the hose volume out, but I think that's where splitting hairs occurs. It would take someone with a PhD in physics to fully answer the question if the hose adds cylinder volume with a check valve at the fitting.
You don't need a PhD. I had this stuff put in the Engine FAQ.
http://forums.sohc4.net/index.php?topic=369.msg476032#msg476032Compression ratio is the starting volume relative to the final volume. Volume at piston BDC is cylinder volume plus chamber volume. Volume at TDC is just chamber volume. Since the piston's actual displacement doesn't change adding volume to the compression chamber (compression tester hose volume) lowers the compression ratio and final compression. It makes quite a gauge reading difference if you change the CR from 9 : 1 to 5 : 1.
You can make an argument for subtracting the volume beyond the one way check valve, as it will equalize over successive pressure peak cycles, or even the spring pressure applied to the check valve the the pressure must overcome. But, on the cylinder side of the check valve the pressure is lost and compressed from zero at each individual compression cycle. It cannot cumulatively build up within the hose between check valve and cylinder anymore than it can in the cylinder itself.
Imo, if you want to know true cylinder health use a differential gauge. This will also tell you where the leaks are by listening to the hissing air location. The compression gauge is still useful for locating gross failures, or differential problems among cylinders.
Regarding the altitude pressure variation: note the barometric pressures vary with invading weather systems ranging from 980mb to 1050mb (13.7 PSI to 15.2 PSI). Might be useful in your quest for "most accurate".
I submit, that a differential set up is far cheaper than a calibrated compression tester, a laptop running an Excel equations (or Matlab), and sensitive baro pressure gauges, which are used to extrapolate true compression values.
...Not, that mental masturbation can't be fun, as an alternative to actually repairing or diagnosing a motorcycle.
Now for something else useful, here's how to turn a page for the newspaper.
The Page Turner