Diversification is often a misunderstood strategy, while in theory it can generate greater long term profits,
Generally speaking, diversification is not considered to be a strategy to "generate profits," but instead as a means to preserve value.
If you are considering and/or trying to use diversification as a means to generate profits, then you seem to be engaging in some kind of gambling (like a shitcoiner hoping that one of his shitcoin's hit it BIG). That's surely not either an investor mindset or an investor way of choosing his asset allocations.
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The reason for that first sentence is that in my many years of reading investing books and articles online, I have found, and probably you have done so as well, atempts to describe diversification as a strategy that could potentially outearn other strategies using a principle similar to indexing, arguments that seem weak to me, that is why I state that is the theory behind such claims and then I describe diversification for its real purpose.
I think you need to read more on the principles of specialized knowledge rather than diversification. Reason being that diversifying so much results in Jack of all trade and master of none, brings about serious distraction and can decrease your overall productivity as you have to manage each investments properly. Unless, of course you've trusted people managing your investments that you're not much of a professional in. Diversification only helps to mitigate risks by spreading risks across individual investments as against very much fewer investment options.
Specialized knowledge gives you an extra edge in limited areas and arms you with proper experience and information to turn your limited means into your own gold mine. You can leverage on your knowledge to make any amount of money you wish.