Does there exist a positive constant $c>0$ such that $$(x-1)^2+(y-1)^2 \le c\big((x-y)^2+(xy-1)^2\big) \tag{1}$$
holds for any nonnegative $x,y$?
Let me add some context for this question:
The motivation comes from the case were $x,y$ are interpreted as singular values of a $2 \times 2$ matrix $A$ with nonnegative determinant. Then $f(x,y)=(x-1)^2+(y-1)^2=\operatorname{dist}^2(A,\operatorname{SO}(2))$.
I am interested in bounding $\operatorname{dist}^2(A,\operatorname{SO}(2))$ from above by a sum of two terms: a term which penalizes deviations of $A$ from being area-preserving, and a term $\operatorname{dist}^2(A,\operatorname{CO}(2))$, which penalizes deviations from being conformal. (Here $\operatorname{CO}(2)=R^{+}\operatorname{SO}(2)$ is the group of conformal matrices).
In an answer to this previous question of mine, the following bound was proved: $$ (x-1)^2+(y-1)^2 \le |x-y||x+y| + 2|xy-1|. $$
While this is close to what I had in mind, the term $|x-y||x+y|$ can be large even when $x,y$ become very close. In fact, one can prove that $\operatorname{dist}^2(A,\operatorname{CO}(2))=\frac{1}{2}(\sigma_1(A)-\sigma_2(A))^2$, so this is the reason for asking about the specific bound $(1)$. (The term $(x-y)^2$ corresponds to $\operatorname{dist}^2(A,\operatorname{CO}(2))$).