ABSTRACT Hydrodynamical cosmological simulations have recently made great advances in reproducing galaxy mass assembly over cosmic time – as often quantified from the comparison of their predicted stellar mass functions to observed stellar mass functions from data. In this paper, we compare the clustering of galaxies from the hydrodynamical cosmological simulated light-cone Horizon-AGN to clustering measurements from the VIDEO survey observations. Using mocks built from a VIDEO-like photometry, we first explore the bias introduced into clustering measurements by using stellar masses and redshifts derived from spectral energy distribution fitting, rather than the intrinsic values. The propagation of redshift and mass statistical and systematic uncertainties in the clustering measurements causes us to underestimate the clustering amplitude. We then find that clustering and halo occupation distribution (HOD) modelling results are qualitatively similar in Horizon-AGN and VIDEO. However, at low stellar masses, Horizon-AGN underestimates the observed clustering by up to a factor of ∼3, reflecting the known excess stellar mass to halo mass ratio for Horizon-AGN low-mass haloes, already discussed in previous works. This reinforces the need for stronger regulation of star formation in low-mass haloes in the simulation. Finally, the comparison of the stellar mass to halo mass ratio in the simulated catalogue, inferred from angular clustering, to that directly measured from the simulation validates HOD modelling of clustering as a probe of the galaxy–halo connection.