Understanding the physical mechanisms of the refractive index modulation induced by femtosecond laser writing is crucial for tailoring the properties of the resulting optical waveguides. In this work we apply polarized Raman spectroscopy to study the origin of stress-induced waveguides in diamond, produced by femtosecond laser writing. The change in the refractive index induced by the femtosecond laser in the crystal is derived from the measured stress in the waveguides. The results help to explain the waveguide polarization sensitive guiding mechanism, as well as providing a technique for their optimization.