Is this diagram possible or correct? just starting to learn to design. I don't know the term in english to describe this type of design, so I'm here for some help.

Can this "specialitzations" have a relation like this one? Thanks!
Yes, it is allowed. Every relation can be related to any other one (or even to itself.) 

The naming does not help much but if the created by means the (natural) "ingredients" that an artificial product is composed of, then it makes sense to use a many-to-many relationship.